Overlap events not always working

Hello,
I have two objects. One (an obstacle) is being moved towards the other (a ‘crosshair’). The crosshair is supposed to change its colour if it’s overlapping with the obstacle. The problem is that the ‘On component begin overlap’ event on the crosshair doesn’t always trigger. In fact, most of the time it doesn’t.

What I’ve tried so far:

  • Replacing the obstacle mesh with a cube - similar behaviour
  • Increasing the size (thickness) of the obstacle and the crosshair - seems to help a bit, but doesn’t solve the problem

I would really appreciate any help in understanding this behaviour.

Here are collision settings of the crosshair:

and of the obstacle: