What is in green uses a display: none; when the form is set to .Hide and is removed when the .show is called, however when Form2.Hide and then Form2.Show is called the z-index on that span has to be increased in order for the .show to work for the form in the div (red). Manually increasing the z-index in the chrome dev window causes it to show.
After watching the z-index on form2 changed, I realized that Form2 was being recreated, adding additional copies of the form, each with an increasing z-index, which explains the z-index issue.
Problem solved, thanks for help!