I can confirm this issue existing on 18.04, too, and it probably doesn't
have anything to do with DisplayLink as I'm using a direct HDMI
connection via the built-in HDMI port on a Dell XPS 15 9570. The
external screen is not hDPI, sporting mere 1920x1080, so to keep the
proper scaling on both I utilize xrandr to double the frame buffer and
then rescale it back for the external screen, i.e.:

xrandr --fb 7680x2160 &&
xrandr --output eDP-1 --mode 3840x2160 --rate 60 --primary &&
xrandr --output DP-3 --mode 1920x1080 --scale-from 3840x2160 --panning 
3840x2160+3840+0 --right-of eDP-1 &&
gsettings set org.gnome.desktop.interface scaling-factor 2

But even without the scaling the cursor will flicker, just not to the
same extent as when scaling is applied (subjective). The flickering
happens only in the upper half of the main screen, too.

Disconnecting the external screen fixes the issue.

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https://bugs.launchpad.net/bugs/1724307

Title:
  [Dell XPS 13 9360] Mouse cursor flickers with one external monitor
  connected via HDMI+Wavlink WL-UG39DK1V

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