Why does my bread collapse in my bread machine?
It may be because of the type of yeast being used.  Quick-cooking bread machines (1 hour cycle) typically requires "instant" yeast which rises much faster.  Standard-cooking bread machines (2-3 hour cycle) need regular yeast, which is active longer.  It sounds like you're using instant yeast in a standard recipe; thus the yeast stops working before the bread machine gets to the second rise cycle.  Under-cooking may be because the resultant dough is denser than the machine expects, thus doesn't heat through in time.

Unfortunately the trade names for "Regular Active Dry" yeast and "Instant Dry" yeast can be very confusing.