Tyler,
That's a good question.
Based on some limited testing that I'm becoming involved with, it doesn't seem like the VLD depends on having its jacket 'peeled' back to initiate expansion. I know what you're talking about, it seems like closing the point might prevent the jacket mouth from being wedged open. Considering that the tips of the VLD's are so small to begin with, I don't think that expansion is heavily dependent on having an opening in the meplat.
It's certainly a good question that deserves some attention. We have a terminal ballistics testing project that's just getting off the ground involving high speed photography. We hope to learn more about what happens when bullets hit things and the effects of variables like velocity, stability, and now closing points.
-Bryan