Which block explorers were you looking at to determine that the transaction had been dropped? Did you check blockchain.info, blockr.io, live.blockcypher.com, blocktrail.com, btc.com, blockexplorer.com etc etc?
Just because it has been dropped by one explorer (which effectively represents one node)... does not mean that it has been dropped by all nodes.
It might be that the nodes that MB Classic is scanning from still contain that transaction in their mempool or some other weirdness...
Yes, checked most of explorers you mentioned and transaction had been dropped.
If you check my post, you'll realize that IT WAS DROPPED BY MULTIBIT ALSO when I reset the blockchain. The problem was: it was not showing me my BTC that were part of the pruned transaction. The transaction was gone from Multibit, but the BTC didn't return.
@ HI-TEC99: Thanks, I was aware of the method, I just wanted to check if there was a resolution in Multibit to avoid going to Electrum. However after seeing no resolution, I imported my private keys into Electrum. The balance shows up there and everything is OK.
Now I'm fully on Electrum.