enter image description here

I have not have enabled proportional editing.

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    $\begingroup$ Are there any modifiers on the object? $\endgroup$ – Mr Zak Jun 9 '17 at 11:32
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    $\begingroup$ This looks like an artifact from the "adjust edit cage to modifier result" option in some modifiers like Subdivision Surface. If this option is toggled, you're not really seeing the vertex's actual position, but its closest point on the modified surface. $\endgroup$ – Nicola Sap Jun 9 '17 at 13:22
  • $\begingroup$ @NicolaSap You are absolutely right. I just tried it myself and can reproduce as you described. $\endgroup$ – satishgoda Jun 9 '17 at 14:07

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