Hi VoidGoat,
Unfortunately collision is baked in when you play the game. However, there are ways to create something similar to what you are attempting to accomplish. I’m attaching two images, the first is a “hole” blueprint that is simply a box or sphere collision. You will need to create a custom object collision channel in Project Settings>Collision for this setup to work.
The second image is the player character spawning the object into place. It does a line trace from the camera to the location, searching specifically for objects with the collision type , if it finds one it creates a hole in the direction the player is facing. You can change this to a direct hole by using impact normal as opposed to hit location.
The only thing this setup doesn’t quite do yet is mask the mesh material to create a “hole”. I think location based opacity will work, however I have not tested this on my end yet. If you would like to learn more in the meantime there is a fantastic tutorial on location based opacity here: