The explanation
This example works based on that you can insert an element in a contentEditable and retrieve it's offset to the top and the left of the screen. When shift + key 50 is pressed, the event handler will prevent the @ from being written and instead inserts the @ + dummy object itself. Then we retrieve the offset from this object and move the dropdown menu to that offset. Furthermore, we save the character-offset as a custom property x-custom-offset of the menu, so that we can insert a value at that specific location. We then need to remove the dummy div, but if we would remove the dummy with $('#dummy').remove() the text node before the dummy and the text node behind the dummy will not merge. This will delete the last textnode if we were to put an other @ somewhere and/or place it in the wrong location. Therefore, we simply replace the contents of the editable div again. Last, the caret must be set back to it's original position. I cannot figure out how to do this properly though.
The second handler is to insert text into the textbox. The code should be self-explanatory. The x-custom-offset property we set earlier is used here to insert the text into the correct place in the textbox. $('#dropdown').on( 'click', 'li a', function( e ) { ... } ); will attach the click event to the ul instead of the li's, so that it will keep working if you dynamically create the li's (but it will only fire if you click the link part).