In recent years, cave-in ground failures have become increasingly common worldwide. The leakage of defective pipelines buried below ground level has been identified as a significant contributor to these failures. This study utilized experimental seepage-erosion tests to characterize ground collapses resulting from pipeline leakage and examined the impacts of leakage locations on soil and water losses. Subsequently, discrete element method-finite difference method (DEM-FDM) coupling analyses were conducted to elucidate the mesoscopic mechanisms of pipeline leakage, including changes in seepage force, effective stress, and soil pressure on the pipeline during leakage. The findings include: (1) The locations of leaking spots on pipelines significantly influenced soil and water losses; (2) Leaking spots closer to the pipe bottom led to more severe ground collapses due to larger seepage forces; (3) Soil pressure exhibited decreasing trends near the leaking spot and increasing trends at other locations due to the soil arching effect. These insights provide valuable guidance for preventing pipeline leakages.