Seawreath disappears when dropped on the ground

I took a screenshot but it's just Wilson standing in an empty meadow.

The item is still there- he will pick it up and equip it when I hit the spacebar. It's just invisible and doesn't trigger any mouseover text. It's as if nothing is there unless I hit the action key.

For full disclosure, I spawned this item in, I didn't craft it- just in case that's related to the issue.