Suppose I have two particles, one moving at $0.9c$ to the right, starting at $(-0.9c,0,0)$ in the lab frame at $t=0$ and the second one moving at $0.9c$ to the left, starting at $(0.9c,0,0)$. In the lab frame at $t=1$ these particles are going to collide at the origin $(0,0,0)$ where we've placed a marker and annihilate. At the beginning the marker is $0.9c$ from the first particle and the second particle is $1.8c$ away from it in the lab frame.
In the lab frame the annihilation will happen at the point of the marker exactly.
We know that in the frame of the first particle, the marker is moving towards the particle at speed $0.9c$ and by the speed addition formula the second particle is moving towards the first particle at speed $\frac{0.9c+0.9c}{1+\frac{0.81c^2}{c^2}} = 0.995c$. We also have length contraction in the frame of the first particle which sees the distance between it's starting point and the marker as $0.9c\sqrt{1-0.81c^2/c^2} = 0.39c$. It also sees the distance between its starting point and the starting point of the second particle as twice this, so $0.78c$.
The marker is moving towards it at 0.9c, so from the reference frame of the particle the marker reaches it in $0.39c/0.9c = 0.43$ seconds. The second particle is moving towards the first particle at $0.995c$ and has a distance of $0.78c$ to cover which takes $0.78c/0.995c = 0.785$ seconds to reach the first particle and annihilate both of them.However when $0.785$ seconds will have elapsed the marker will be well behind the particle and so in this frame the annihilation event will not happen at the space location of the marker.
To me this seems weird and my intuition isn't helping me see why it's possible for the location of the annihilation event to differ from the marker just based on the reference frame we're using. What's the right way to be thinking about this situation?
EDIT: Here is the spacetime diagram as requested:
This actually confuses me more if anything, it seems to show that the time of the collision in the reference frame of the first particle is at $t' > 1$ which means from the point of view of the particle it takes longer to collide than from the lab frame view, which is weird since distances are contracted for the particle frame compared to the lab frame, so the collision should occur in less time.