Thanks for trying to help everyone! I'm not sure what I'm doing wrong here, but it's still not working.
Layer 1 is set to force own texture.
+ Mouse: On Left button Clicked on Sprite2
-> System: Create object canvas on layer 1 at (Sprite2.X, Sprite2.Y), create hierarchy: False, template: ""
-> canvas: Set size to (Sprite2.Width, Sprite2.Height)
-> canvas: Paste object Sprite2 with effects
-> Sprite2: Destroy
-> canvas: Set drawing blend mode to Destination out
-> canvas: Fill ellipse at (Mouse.X, Mouse.Y) radius (15, 15) with rgba(0, 0, 0, 100) (Smooth edge)
When I click on the sprite it just disappears.
I think I'm going to just do this with art. That should still work well!