Deformable meshes are supported by the exporter and the Torque Game Engine through the use skeletal animations. The vertices of the mesh are assigned weights to the skeletal nodes (joints), and the transforms of the skeletal nodes then deform the mesh in real time.
Because building characters or other shapes using skeletons is a very deep subject matter, this section of the documentation will only go over how to setup and export completed skeletal animations.
The File Pack contains a complete project directory called simpleBox that you may use during this tutorial.