Yes, hole = hold
Yes, I think it should say draws FROM memory as one does not physically use memory with which to draw. Either ‘from’ or ‘with’ is incorrect in this statement but allowing for ‘Headline grammar’, from would have more clearly expressed the essence of the desired communication.
Yes, I know memory is not located in the medulla. I was simply reaching for something with which one could conceivably hold a pencil.
Not to belabor it, but “draw from” is ambiguous. I draw from my memory, as one draws from a well, when I write; no pictures involved. The more precise construction would have been “draws scenes from memory,” but headline writers have a limited character count. And, often, a deadline measured in minutes.
I don’t find the head line incorrect or misleading. You do ‘hold’ the drawing tool in your hand but you ‘draw’ using your entire arm.