Drops Far Away From Text Labels

I don't remember having this problem before 1.2 but now sometimes, especially with large amounts of items, the little labels are like an entire screen away from the actual items sometimes. My character runs to go get an item I click on, and then I can't see the text from the other items anymore.

I took a screenshot, though this is a mild example:
(You can see the white outline of the Quilted Jacket on the ground where it actually is)

I've always had this problem, I usually just double press Z to fix.