OP- at least it is just sitting there and letting it hang loosely. Drifter likes to *ahem* play with it (which he gets in major trouble for). I have been told by my vet this could be because he was gelded at 6 after having already bred.
Y'know what they say! Boys will be boys :) Drifter's is always hanging out as long as we arent riding. When I walk up, it comes up to say hey. As long as he isnt "disrespectful" with it, I don't care. Its actually helped me spot a bout of colic. I walked up, it didnt come out - and that couple with some other things- I knew something was up.