The hip file is loaded with explanation comments to make you better understand what is happening there and how.
As you can see, the idea of the scene is to have a set of "knifes" object (though there are 2 axes and only 1 knife, that is actually a dagger...) that have a special "blade" primitive group that can stick into things. Each polygon in the blade knows at which angle it is allowed to stick (so blades do not stick on side impact for example)
"knifes" can stick into static objects as well as into other rbd objects, animated or simulated. They actually can wobble after the impact, and the wobbliness is adjustable as the spring constraint strength, but it's not very visible in the example due to most of the objects being dynamic and light.
The scene is extendable so for example impact surface may be analysed for material type and desided whether a "knife" can stick into it, penetration depth may be tied to impulse strength, constraint may be broken based on it's forces of torques, and so on - this all is left out not to overcomplicate already a bit overcomplicated setup, and left for the viewer to try out
the project is available here: github