Cannot resolve path with a tilde(~) at the beginning | webpack | angularCLI

Notice the tilde at the beginning of the file path at the top of the page. The project is an Angular4 project utilizing the CLI, so the webpack config file is hidden. This tilde is processed by webpack and tells webpack that the path is relative to the root of the app, which would be the "src folder" show below.

How can I get webstorm to recognize this as a valid path within this file and also have it recognize the relative paths we are used to seeing?

Any help would be greatly appreciated!