Why does the Hydra plugin only work in editor (PIE)?

You most likely had no code in your project.

As of v0.6.3 (UE4.3) of the plugin all you need to do for the plugin to work with shipping build is:

  1. Your project needs code. Even if you’re using blueprint only, add code to your project and compile (it doesn’t need to do anything).
  2. Package your game
  3. Copy the full or slimmed-down (found in ShippingBuildOnly) Plugins folder into your packaged build {ProjectName} folder. E.g. if I packaged a project called HydraTest in my packaged directory (typically called WindowsNoEditor) find the HydraTest folder and place the Plugins folder there.
  4. Confirm its working by launching your packaged game from the Binaries subfolder.

See Hydra Plugin - Main Thread, shipping post for details and troubleshooting.