When the exit hole is larger than the bullet, the bullet doesn’t just pass through the object. It compresses the stuff of the object in its path, and that stuff drags the surrounding stuff forward (because the molecules of a solid object are linked together). As that stuff breaks away and moves forward, it drags its neighboring stuff forward too, creating an increasingly wider path of destruction until the energy of impact is used up or the bullet and displaced stuff exit the object.
Latest Answers