how about instead of overlapping with offset you start using dist (sprite1.x, sprite2.x, sprite1.y, sprite2.y) <32 -> destroy sprite1 ?
problem with overlapping - imagine my object is a big ">" form like this one (sprite 1). And now imagine your second sprite is a dot "."
if you check for overlapping with -32 x and y - they will never overlap and therefore your event will never fire, even though the dot is under 32 distance from <.
Also you have to take in that origin point of your sprite is the point where you calculate your stuff from. not borders. sprite x,y = origin point. So using distance from sprite 1 to sprite 2 you get this:
if ( dist (.x,.y,<.x,<.y) < 32)
(it won't matter if left, right top or down, each will work. )