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Soul Crush

From the Soulcalibur Wiki

Soul Crush is a vulnerable, defenseless state that is entered when an opponent's Soul Gauge is flashing red and his strong attack is blocked or he encounters a Guard Impact in Soulcalibur IV. A Critical Finish can be performed on an opponent in this state. If one fails to do a Critical Finish, their opponent will still be weakened by the Soul Crush. A Soul Crush automatically destroys a piece of equipment, and cracks the Soul Gauge, making it deplete faster.