Wen you drop something on the ground to share it with another player he cannot see it at all or interact with it by any means, like it didn't exist at all, but I can see it and grab it back.
But wen these happens most likely I won't be able to grab it back at all or Interact with it also. At these stage we consider it the item totally lost without any possibility.
You can try to re log, but won't do any difference to any of us. It can happen also alone by yourself.
You have your inventory full you drop a thing that's in your hands to interact with something else, do a fireplace or something. And wen you want to grab it back you can't, you see the prompts but you are unable to pick it up, or you see the item on the floor, and don't see the prompts, but you can see it on the proximity, you can interact with it but won't pass from the ground to your ands or inventory, or get equiped or anything. We consider it lost by these stage...