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I've been using Mac OS X for maybe 6 years now, and I have no idea what's causing this. Maybe someone else has this experience and can help me out.

Symptom: while holding the alt/option key, if I move my mouse the current window starts resizing, anchored at the top left (it behaves exactly as if I had clicked-and-dragged the lower-right icon on the window).

Anyone have an idea of what I may have installed that caused this? Or how to make it stop?

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I figured this out, the culprit was the latest release of BetterTouchTool

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You can deactivate that in the BetterTouchTool preferences. (Window Moving & Resizing)

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