Yes but maya has no knowlege of internal structures of the object so the thing sowuldnt realy behave like a balloon killed by gas unless you work your ass of. Besdes the effect would be sort of a faux right derformation.
This is not a simple thing to do with realflow either, so if you need this done by tomorrow then i suggets keying it manualy. If on the otherhand you have 3-4 week to set this up properly then yes sure suse dynamics.
Theres a misconception going around with many 3d artists that says adding dynamics to do ths stuff is the easy way around. Well it is in matter of fact often the realy hard way around to do stuff. NOt only are the laplae calculations involved in dooing volume deformations hard to solve theyare also slow to solve, have lots of parametrs that need tobe just right inorder for it to look right. So setting it up ususaly is slow for 2 reasons: One you dont probably know all the real forces involved right testing some bvvlaues takes a loong while so tweakling smethinga and waiting one hour later is niot fun each tweak takes the one hour period. Two theres absolutelyno controll oever the end result, sometimes its desireable if its a technical vusualisation fo somesorts, but often the director comes and asks this and that change wich offecurse the sim does not do so youd end up doing it manualy anyway.
Se how well did you do on physics lessons in school, because suddenly you need that info.