Since I have not only a second, but a third, fourth, fifth, sixth… 12th collider on that panel, that is not really a desirable option. As I mentioned in my post, I simplified my problem for illustrative purposes but there is a lot more going on. Doing a collision detection within the collision detection doesn't really seem all that sensible an approach. After all, that is exactly what I expected OnHover to do.
I still do not understand why the collision is trickling down from the top collider to the bottom collider? Why would the logic turn off the underlying collider? After all, the mouse is still over it?