I noticed something today (just a few minutes before Adobe ruined their reputation) that hover actions respond to the area of the component they are a part of, not the triggering hover item.
My work can't be publically shared, but this should produce the same results:
Create a line of text. Create a large blue box on the same artboard, far away from your text.
Grab both, make component.
Default state: make the box nearly the same size as the line of text. Place them apart from each other so they aren't touching.
Hover state: Make the box huge. Keep it separated from the text. Notice the green outline to the component bounds.
Prototype > Click on the line of text > Interaction > Hover, Auto Animate, Hover State, 0.3 Sec Ease Out.
When you launch this, the hover will activate, but not release until your cursor has moved out of the bounds of the component box. The proper behavior would be to have it respond to the bounds of the hover trigger (small line of text), not the entire component (entire area between line of text and big blue box).
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Thanks for reaching out and sharing the feedback. This can be reproduced on our end as well, and it's working as designed. Having said that, I agree there is a scope of improvement so let me assure you, I will share your feedback with the Engineering team.
Feel free to reach out if you have any question or feedback for us, we'll be happy to help.
I don't know if this was ever delivered, but being able to resize the trigger area inside/outside of compenent boundaries would certainly be desirable.