I was in the Council Chambers using the Forge. My portal back to the previous area was right next to me.
After finishing with the forge, I started dragging the item back to my inventory; but by mistake, released the mouse button over the portal. I loaded to the other area and the item was not ‘attached’ to the mouse cursor anymore.
I quickly reopened the portal and went back to the Chambers. The item was lost - not located in the Forge, inventory, or on the floor.