When using the new dragging to craft while holding a button, a random death occurs in which only armor and crafting materials are dropped.
Items tested with: Chest, Item Frame
Death message: jedijrt died
As said before, no stuff is returned from the normal inventory and hotbar.
I can still move around and open my inventory after the death occurs. Very strange. seems to only happen in multiplayer. My server admin is nice enough to spawn stuff back.