The flight instructor reported that he was practicing hover flight in a helicopter over soft grass at a height of 5 to 7 feet above the ground with a student pilot on his second training flight. The flight instructor further reported that he was controlling the collective and anti-torque pedals, and the student pilot was controlling the cyclic control. During the hover, the flight instructor reported that he became fixated on the manifold pressure gauge and did not notice that the helicopter was moving forward and descending. Subsequently, the helicopter's right skid impacted the ground and rolled over.

The main rotor drive shaft and tailboom were substantially damaged.

The flight instructor did not report any mechanical malfunctions or failures with the helicopter that would have precluded normal operation.