Collision (shapeFlag) Problems

Ok, I can use shapeFlag easily to make my collision work when they both are on the root scene, but when you put them inside a movie clip, they start acting all weird.

There is two dots in the middle of the orange ghost that handle all the coding. If you have any ideas on what to do please post here.

I thought maybe using localToGlobal, but I have no experience or idea on what to do with it.
Any suggestion/fixes would be nice.

Please take a look at the example, and fix Collision2, thanks!

Arun