Ok. I think I get this with a slight variation.
(I may not have this quite right, yet so please bear with me for a bit)....
I thought that the contraction occurs in any component of an object's dimensions, which lies parallel to the direction of travel at the moment of measurement. (Ie: where this component intersects the other's 'hypersurface of simultaneity').
(This incidentally, I think, is associated with the twins paradox).
I've attached a pdf showing two sticks moving off at the same speed in opposite directions. Check out the B stick. Where the ends of the B stick intersect A stick's hypersurface you can see the length has contracted from one unit, to less than one unit.
So, from this diagram, the length contraction happens if the direction of travel is in opposite directions, but happens to the component of the stick's dimension, which lies parallel to the direction of travel.
The same reason explains the hole shape as being elliptical. (Incidentally, if it was elliptically contracted, the stick would fit thru the long axis in the other scenario, would it ?)
Cheers
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