Strange problem with Mouse Over events and mesh collision

I am using some assets that have a default forward Y direction; I simply rotate them -90 and they face the right direction. Everything works fine, collision works for physics and the trace I use to select the pawns.

Except for one strange problem, when using the On Begin/End Cursor Over events, which I am using to change the cursor type when hovering over the pawn, the cursor over trace is behaving as if the mesh has not been rotated -90.

Again, collision on the mesh works perfectly fine, even when I show collision in the editor, it is aligned with the mesh. I am only seeing an issue when using the Cursor over events. Very strange. :man_shrugging: