When I overshoot the chunk of words that I want to highlight I typically just touch anywhere outside of the highlighted words and pop-up options to de-highlight everything and start my touch and drag over again!
Or, I don't take my finger off of the screen (end the touch) until I have the correct words selected. You can drag back and forth, up and down, page to page, so you really don't even need to lift your finger until you have slid around all over the place and have the correct words selected. Then you can lift your finger to finalize the selection.
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