Key to the management of invasive species is an understanding of the scope of an invasion, the rate of proliferation and the rate at which invaded habitats become degraded. This study examines the spatial dynamics of high-density supercolonies of the invasive yellow crazy ant, Anoplolepis gracilipes, on Christmas Island, Indian Ocean, and the associated impacts at their boundaries. Since the early 1990s, A. gracilipes supercolonies have occupied over 30% of the 10,000 ha of rainforest on Christmas Island. Thirty-four discrete high-density supercolonies formed between 1989 and 2003, ranging in size across nearly three orders of magnitude from 0.9 to 787 ha. Supercolonies boundaries are diffuse, and ants were observed in low densities in some cases up to 200 m from the main high-density supercolony. The 13 boundaries examined were all dynamic over a 10–20 observation month period: nine boundaries expanded, and the maximum rate of spread was 0.5 m day−1. Across boundary transition zones, between high-density supercolonies and intact rainforest, yellow crazy ants reduced other ant species richness, occupied red crab burrows and killed resident red crabs, which was the trigger for ‘invasional meltdown’ on Christmas Island. The highly variable and unpredictable nature of A. gracilipes boundaries poses a challenge for incorporation into a predictive framework, as well as for their management.