To run pocketmine from source just put the src folder in your server's root dir. But remember to delete the current phar and to clone the src recursively.
And this is why, as HimbeersaftLP said it just before put the src folder in your server's root dir. And delete your .phar (the one you already have)
I said remove the current phar AND put the cloned src in the server folder, so pocketmine runs from source
Yes it can, check your facts before spreading incorrect information please. If you have all the required folders/sub-modules (PocketMine-MP, SPL, RakLib, language files) in their respective folders then you can start the server from the source files.
...although this is discouraged and should only be done in a development environment. You don't need to run PocketMine-MP at all to create a phar, you only need to be able to run PHP from the command-line. DevTools can be run as a standalone with which you can create phars, or you can even just use the ConsoleScript. Steps to build from source (Assuming you have DevTools.phar already in the server folder): Code: $ git clone --recursive https://github.com/pmmp/PocketMine-MP.git -b mcpe-1.0.3.0 $ cd PocketMine-MP $ php DevTools.phar --make src --relative ./ --entry src/pocketmine/PocketMine.php --out PocketMine-MP.phar (making sure to replace `php` with the path to your PHP binary)