After reading the latest chapter, it appears Rinnegan is making Sasuke teleport in small areas. Quite similar to Shisui's Shunshin. However, Madara did react to his jutsu and could have stopped it if he needed to. Take a look at this:
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If you look in the panel, you can see Madara is thinking inside his head, while Sasuke is using his teleportation. This would imply Madara could have stopped Sasuke. The only reason he didn't, is he didn't have to.
- He was too focused on getting his rinnegan
- He has regeneration, so cutting him in half wont help
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