A Hot Potato is an activity which would like to be scheduled at a space in time already occupied by another activity. i.e. a resource conflict.

The placement of the hot potato in the schedule, shows where the hot potato would like to be booked. 

Below a hot potato is depicted. It is the yellow/black 'thing' just about the 'Foundation' activity.

You do not directly create hot potatoes. They are a result of space conflicts, which you have accepted by clicking the Ctrl key, when you were moving, resizing or dragging an activity or template project.

A hot potato represents a problem you have to deal with at some time, but not necessarily right now.

The effect is that Multi-Project-Planner remembers the problems, freeing you from having to deal with everything simultaneously.

A hot potato is an activity. It can be dealt with as an activity, i.e. it can be moved, resized, deleted etc. The hot potato can not be assigned any resources manually or automatically.

This video shows how the hot potato came into existence.

How to handle hot potatoes.