Instantly Defeat = Massive Damage?

There are actually quite a few ships that have over 100k health/protection combined, and there have been for some time (Hounds Tooth can easily have 150k health+protection before adding in any protection up). I've also seen Thrawn's ultimate destroy ships that had Endurance's 150% bonus protection - which, for every ship in my roster, bumps them over the 100k health/protection combined mark.

I'm not sure the mechanic of Thrawn's ultimate doing 99999 accurately explains what is happening in the situations that are being described. I'm curious what the official explanation will be here.