Yea, I also believe you drop the crystal... I tried the assassin premade PVP build and I was playing around with it in the training area. I was holding the flag when I had that running skill on (the one where you return to where you were when you activated it). When the skill expired, my character dropped the flag right before it teleported me back to my original spot.
I assume it works like this with any other item that you cave to carry.
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