So trying to put “Ignore world shifting” onto the Foliage Actor makes hierarchicalinstancedstaticmesh component not move (ofc since its owning actor ignores origin shifting) and since in my test case I made the shift small enough for the box to be still on my platform, the box actually now collides with my player character. So this leads me to the conclusion that somehow the physics shape of the instanced static mesh is not being moved when the origin shifts or it is being moved somewhere else. I attach some screeenshots that illustrate what is happening.
