The idea is really cool, there are just a little bit of issues with the physics, for example I had the crate clip outside the level a couple of times, or if you stand on an object you're controlling and than raise your mouse you get lifted with the object but then it becomes unstable and starts rotating at crazy speed.
For example, in the level with the crate and the barrel that need to be sqeezed into tiny apertures, I passed both objects without shrinking them, just by wiggling the mouse in the direction of the holes in the wall/platform.
Other than these physics issue it's a cool game