Unable to get the cycle 2 plugin I have installed Views Slideshow module 7.x.3.1.  Also, inside the sites/all/libraries I downloaded the cycle2 plugin. 
I placed jquery.cycle2.min.js into the jquery.cycle2 folder, so it is at sites/all/libraries/jquery.cycle2/jquery.cycle2.min.js.

When I tried creating a view using Format : slideshow, I encountered the following error:


  CYCLE OPTIONS You need to install the jQuery cycle plugin. Create a
  directory in sites/all/libraries called jquery.cycle, and then copy
  jquery.cycle.all.min.js or jquery.cycle.all.js into it. You can find
  the plugin at http://malsup.com/jquery/cycle.




Even after installing the cycle plugin in the libraries folder, I could not see an option for cycle2. 

Along with with views slideshow, I need  pager effect and continuous effect, with vertical effect instead of horizontal effect.
Readme says 

1) Assure that you are using Views 3.x. http://drupal.org/project/views

2) Upload/install the Libraries API module. http://drupal.org/project/libraries

3) Upload/install the ctools library. http://drupal.org/project/ctools

4) Create a sites/all/libraries directory on your server.

5) Create a directory within sites/all/libraries named jquery.cycle.

6) Locate/download the jQuery cycle plugin. http://malsup.com/jquery/cycle

7) Upload/install the jQuery cycle plugin: place it inside the jquery.cycle
   directory.
8) Enable the Views slideshow and Views Slideshow: Cycle modules

9) You should now see the new views style option called "Slideshow"

You need to install cycle plugin not cycle 2. Try installing using cycle plugin and follow above instructions.

There is a sandbox module available if you want to use Cycle 2 plugin.

You can download using git commands.

git clone --branch master http://git.drupal.org/sandbox/BenYoung/1832338.git views_slideshow__cycle2

cd views_slideshow__cycle2

Follow the installations instruction in project page for the same.