The same souls that Vegeta couldn't so much as touch, let alone destroy? Or the souls that were never said to be threatened in the clash?
Also yes, it does. If you're Low 2-C and don't have space time screwery, you don't punch timelines out of existence.
Grovyle (PMD Explorers) for example can be Tier 2 all he wants but he's not going to punch time (I mean, except for the time he did).