Was trying this today. It seems to pick a random point, probably the point where I landed out of hyperspace or took off from a planet, and keeps the explosion in that one spot. I used the weapon and it's blast stayed in that spot, no matter where I fired. At one planet, after coming out of hyperspace, I tried it, exploded where I exited hyperspace, so I tried landing on Tatooine right there, then taking off to see if it would change to where I appeared after take off. Seems it just stayed in that hyperspace spot.
(Also, maybe to quickly add to this, it would seem that the Pirate Vessel missions are a bit bugged. When using weapons on the ship, it doesn't become hostile, and doesn't retaliate. Thanks.)
-Tractus-
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Terack Grump - Ex-Merc/Bounty Hunter, Rebel Ensign.
Ships:
The Midnight Wolf: Crashed on Dagobah
The Midnight Wolf II: Confiscated/Destroyed by the Empire
The Midnight Wolf III: Current Ship