Level 2 needs a different approach to "breaking" the big guys. In level one, you broke out by "deleting" part of a leg with an orange block. Breaking a leg here won't work because you need every block, you can't afford to sacrifice any.
But you don't need to actually remove parts of the big guys to break them - you only have to make them look different than the small guy. The arms can be affected too.
Use that to line up the two big guys with the big guy with short arms to make the middle one a proper big guy so it can be moved.