I can NOT figure out how to get the text box to hug the actual text. It is either waaaay too small…or if I resize the box by hand, it’s in the wrong place (it grows downward from about half the height of the type.)
Like tank666 says you need to check your line-height, but if you resize the boundingbox then you need to set the sizing to auto width.
Or is it that you want to change the font size by dragging the boundingbox? AFAIK you can’t do that unless you flatten the text, but then you won’t be able to edit the text. A workaround could be to holding down Ctrl / Cmd and drag the font-size.