Oh, I'm familiar with that one. 
A couple of posts over there are mine. 
I suppose I didn't expect this to work, at least not with higher numbers. How could it work if the collisions occur faster than the frames per second. It often goes back to those two main issues… unexpected energy loss/gain and no CCD.
I think it's more about an overall issue I've been having with Hype and Physics. There's something I imagine, so I try creating it in Hype, but then it doesn't work as expected. There's either a strange glitch or the Physics isn't as responsive as expected.
Your first video was closer to what was envisioned, but not quite right. The second video… it's certainly not close visually.
I did try using just Matter.js. That's the “I tried to do this manually” part.
What was nice was that there were more options. Hype doesn't have settings for slop, mass, infinity inertia, and other nice features of the Physics API. It can be done manually, but that can be a challenge for people using Hype.