1)place stun baton into hands.
2)push the "x" button in the inventory screen to return the item to my back.
3) Item was placed back on my back and in free slots in my inventory. '
4) item was frozen both on my back and in the inventory. I was unable to drag and drop or move the item around in my inventory.
5) exit and relog into the game freed the item and i was able to interact with it normally.