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getTargetEditPart() is allowed to return null (and does if the mouse is over an invalid EditPart target, causing it to show the 'no drop' sign), and there is a line at the end of the method that tries to use it without checking for null: helper = (SnapToHelper)getTargetEditPart().getAdapter(SnapToHelper.class); A simple check for null here would avoid the NPE.
PPS, make sure you agree (I didn't have time to look at the code) then try to get in for RC2.
Fixed and released to HEAD.
Reopening, the real fix should be that the tool transitions to the invalid state on mouse down if there is not target editpart. It doesn't make sense to show resize feedback if there is no target. Current change can stay. Real fix to come post 3.1.0.
I guess we need to track what goes into RC2, so I've opened a separate bug 99990 for the post 3.1 change.