In an installed an app, I can long-hold to start text selection. Once I've done this, I cannot tap on the background to get out of text selection. If I tap on text it can undo the text selection. In the particular app I was trying (http://xmasapp.ianbicking.org/install.html) the front page has no inactive text elements, so there's nothing to tap on that doesn't do something (except the background itself which does not cancel selection).
Can we test this on Nightly
Works for me; Note II/Galaxy Nexus. Tapping copies the selected text to the system clipboard, we get a toast, and the selection clears.
Tapping the selection does clear the selection (though I didn't realize this). However, tapping the *background* does nothing.
I revisited this myself again and wasn't able to reproduce.