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Verify it on libvirt-0.10.2-62.el6.x86_64:
1. Prepare a running transient VM
# virsh list --transient 
 Id    Name                           State
----------------------------------------------------
 7     copy-rm                        running

2. Do blockcopy
# virsh blockcopy copy-rm hda /var/lib/libvirt/images/copy-rm-bak1 --wait --verbose
Block Copy: [100 %]
Now in mirroring phase

3. Remove the dest file after blockcopy
# rm /var/lib/libvirt/images/copy-rm-bak1

4. Do blockjob --pivot
# virsh blockjob copy-rm hda --pivot
error: Failed to open file '/var/lib/libvirt/images/copy-rm-bak1': No such file or directory

Libvirtd doesn't hang. Bug fixed.

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://rhn.redhat.com/errata/RHBA-2017-0682.html