Madara said Guy was the best user of taijutsu (hand to hand combat) that he ever saw. The statement immediately before Madara was stating Guy was bending space was "Fast!", which in the given context means Guy was so fast and powerful that he was bending space. He also made note of Guy's chakra.
Databook translation:
"Maito Guy utilizes the taijutsu move,inherited from his father - "the 8 celestial gates". To unravel the final dragon mystery you have to open the last "death gate" and sacrifice your life (poetic,inst it?TN).
From the red stream emission (Guy's blood and chakra. TN), in a form of a
red burning chakra the great dragon rises, flying out of the ribcage, absolutely unprecedented kick that hits the opponent and beats (turns) him into nothing.
Its power is off limits, overturns the knowledge of anything that taijutsu is capable off, it twists and bends the sky (space) itself on contact, even right side of the body of the strongest ninja Madara was completely destroyed."
Given the context, it states that the power, speed and chakra of Guy is what allows him to bend space. Base sosp Naruto had better speed feats against the same Madara, let alone fighting a fully juiced Madara in his chakra form, and they weren't bending space left and right. Madara also states Guy has unparalleled taijutsu which puts him above Hashirama, who has no noteable special taijutsu techniques, meaning Madara is talking about the power behind his strikes, but he's far below the god-tiers of the verse who never bent space.
Either way it doesn't do anything combat wise.
"and can stop a foe from block or attacking as seen when madara tried to prepare for the attack with his TSB staf"
False, Madara already had his staff raised, but Guy kicked the life out of him regardless.
Sca