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It bends space and compresses it into the hole. before the target is completely closed off in the barrier nothing is really done except the visual distorting. That is why Deidara was still alive even the Kamui passed over his head. If what you say is true then Deidara's neck would have broken due to the distortion. The actual damage only comes when the barrier closes off its target.
That could be more down to Kakashi not having any real control over the jutsu at that point than anything else. In truth, Preta Path is hardly an instant defence and depends on whether the user is anticipating an incoming attack. I'm under the impression that Kamui could create a hole in Fūjutsu Kyūin before it, or the user, has time to react.