You may have a different vid feed and/or better eyeballs.... at full extension, his finger tip might have touched the car, but with that quality of video it's hard to tell for sure - he may have not touched it all.
He should have disengaged totally, but that arm waving may have been nothing more than trying to get the guy to pull over, or to deflect stuff thrown out of the car.
When I ride, I generally want nothing to do with other people or vehicles, and position myself accordingly. This vid is a good example of what can happen when you don't follow that practice.
Rgds, D.