Hype doesn't track overflow as a factor to size the bounding box. Hype Auto Layout can only track Hype elements (and the associated bounding boxes) so your stuck.
I once made an example/experiment called "FixHeightExample"
Marrying that idea with Hype Auto Layout actually does the trick although it still has occasional hiccups when the observer fire out of the needed order (quick resizing). Also, when inserting an arbitrary object like a red box the margin is only respected below the box. Might also be related to the async observers.
You can always just create everything with the regular box model inside a rectangle and let the browser do the layout if it's regular HTML.
Here is what I got… but I can't spare more unpaid time on it. Hope it helps anyway and points you in the right direction:
HypeAutoLayoutTextTweakTest.hype.zip (107,3 KB)