QML ListView stealing mouse events from a QQuickPaintedItem in the list's delegate

QML ListView steals mouse events from a QQuickPaintedItem that's in the list's delegate. I am uploading example QtQuick 2.1 app project for testing. Trying to drag the Circle left or right only works for the first few pixels, then the ListView seems to steal the drag events and interpret it as a left or right swipe gesture.