attempt to index number with 'Position'?

The problem is "POS" is equal to 1, as stated on line 48. Assuming there is nothing else wrong with the script, removing the "1" parameter should work. If you planing on using the first parameter, then add a second argument on line 8.

Edited version.

DB = false
HitBox = script.Parent["Crate"].Hit
local Remote = script.Parent.Regen
local Workspace = game:GetService("Workspace")
HitBox.CFrame = CFrame.new(math.random(-1024,1024),1000,math.random(-1024,1024))
function Stuff(PRT)
        if not DB then
        local function SpawnItem(POS)
            if math.random(1,2) ~= 1 then
                Tier = 1
            else
                if math.random(1,4) ~= 1 then
                    Tier = 2
                else
                    if math.random(1,8) ~= 1 then
                        Tier = 3
                    else
                        if math.random(1,16) == 1 then
                            Tier = 4
                        else
                            Tier = 3
                        end
                    end
                end
            end
            local TierFolder = game.ServerStorage.Tools:FindFirstChild("Tier"..Tier)
            print(TierFolder)
            if TierFolder then
                local Tools = TierFolder:GetChildren()
                local RandomTool = Tools[math.random(1, #Tools)]
                if RandomTool then
                    local ToolClone = RandomTool:Clone()
                    ToolClone.Parent = script.Parent
                    if ToolClone.Parent == script.Parent and ToolClone and ToolClone:FindFirstChild("Handle") then
                        ToolClone.Handle.Position = POS.Position
                    end
                end
            end
        end
        local HUM = PRT.Parent:FindFirstChild("Humanoid")
        local PLR = game.Players:GetPlayerFromCharacter(PRT.Parent)
        if HUM and PLR then
            local LDR = PLR:FindFirstChild("leaderstats")
            local Points = LDR:WaitForChild("Points")
            local Multi = LDR:WaitForChild("Multiplier")
            local UMulti = LDR:WaitForChild("UL. Multiplier")
            if not HUM or not Points or not Multi or not UMulti then return end
            SpawnItem(script.Parent.Crate.Position1)
            local function DestroyWeld(Parent)
                for i, v in pairs(Parent:GetChildren()) do
                    if v:IsA("Weld") then
                        v:Destroy()
                    elseif v:IsA("Model") or v:IsA("Folder") or v:IsA("BasePart") then
                        DestroyWeld(v)
                    end
                end
            end
            DestroyWeld(HitBox.Parent)
            DB = true
            Multi.Value = UMulti.Value+1*Multi.Value + 0.1
            Points.Value = Points.Value + math.random(500,Multi.Value+1*3000)
            wait(30)
            HitBox.Parent.Parent = game.ServerStorage
            wait(math.random(30,60))
            Remote:Fire()
            Touched:Disconnect()
            HitBox = script.Parent["Crate"].Hit
            Touched = HitBox.Touched:Connect(Stuff)
            HitBox.Parent.Parent = script.Parent
            HitBox.CFrame = CFrame.new(math.random(-1024,1024),1000,math.random(-1024,1024))
            DB = false
        end
    end
end
Touched = HitBox.Touched:Connect(Stuff)

function IsInVoid()
    if HitBox.Position.Y >= -10 then return end
    HitBox.CFrame = CFrame.new(math.random(-1024,1024),1000,math.random(-1024,1024))
end

while wait(1) do
    IsInVoid()
end