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In IE10 the implementations is such that afte pointer cancel pointer out is not being fired, which actually makes sense. The specification should be more flexible about when pointer out needs to be fired with respect to pointer cancel.
RESOLUTION: Pointer out firing after pointer cancel is intended design a) You might want to know why the pointer was out - you'd want the cancel event first b) Nice having parity between pointerup and pointercancel (pointerout follows after pointerup) Resolution: http://www.w3.org/2013/04/16-pointerevents-minutes.html#item02