Overlap event fails to fire when overlap is caused by scaling actor

Hi folks,
I have an issue with overlap events related to actor scaling.

I created some characters in a level, created a static mesh cube, set up a third person style camera and enabled the mouse cursor with the intention of having the cube fire overlap events when it overlapped the any character(s).

The mechanic is that the location of a left click is projected into world space, saved as the “location” of the cube. Moving the mouse with the LMB held down makes the cube grow from the origin to the mouse cursor (as projected into world space).

When I create and destroy the cube (each tick) as the mouse moves the overlap events fire as expected.

In an effort to make a more elegant solution, i tried making a single cube and having it scale with the mouse cursor movement instead of be destroyed and recreated. When I visibly overlap the cube with the characters with this implementation, the overlap events do not fire. Can someone explain why not?

As a side question: with the “more elegant” implementation, the cube was being rendered as inverted (inside-out) when the scale of x OR y was negative and the other positive, but rendered fine when both x and y were positive or both negative. I was able to fix this issue by turning visibility off and then back on (in the same tick) for the cube. I wonder why the cube was being drawn inverted in those cases?

thank you