Mouse stops working when lifted and put down back, takes 1-3 secs to work again

The cable is likely intermittent. It loses connection at one angle, and then connection is restored when you put it back to it's old angle. To confirm this, try another mouse in the same port. If that works, it's likely your mouse that is broken. Another test you could do is lift your mouse and the mouse-pad at the same time, if it breaks, then it's the cable, if no, then maybe there is something to your auto-disable theory after all.