I don't get it...

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Mater:I once knew this girl Benderzass...

It's like in those old samurai movies when they get run at each other, and for a few seconds you're not sure who got hit, but then something falls off. Delayed reaction. Didn't expect that from a Ghibli film.

http://www.youtube.com/watch?v=ZpXwPdJIOJY
Best thing ever.

It's a visual joke, as the other poster intimated, that happens often in Samurai shows--and even some western films. The fur all falling off is an indication that the Baron was so skilled and fast with a sword that he was able to shave the king's fur off without the king (or the audience) aware of his motion. There's a similar kind of scene in It's a Mad Mad Mad Mad World. There was a high-speed chase scene involving a toll booth. As the first three cars raced through the toll lane, the toll taker's hand showed quarters appearing. When the fourth car zooms through, the quarters are gone and a dollar bill shows up in its place.