Abstract: A head-mounted display system is provided, including a head-mounted display, an imaging sensor, and a processor. The processor may convey instructions to the head-mounted display to display a virtual object at a world-locked location in a physical environment. The processor may receive imaging data of the physical environment from the imaging sensor. The processor may determine, based on the imaging data, that a world-space distance between a hand of a user and the world-locked location is below a predetermined distance threshold. The processor may convey instructions to the head-mounted display to display a bounding virtual object that covers at least a portion of the virtual object. The processor may detect, based on the imaging data, a change in the world-space distance. The processor may convey instructions to the head-mounted display to modify a visual appearance of the bounding virtual object based on the change in the world-space distance.