I think he just thinks he can tank it. Usual macho (and a little tsundere) behaviour.
Even counting just his hax, he can actually shield himself and more importantly trap others in a case made of un breakable diamon ice...
This is the named move Loki no sold:
Then he used two named moves/special swords to attack Loki or repel his attacks:
He had to use Omen to block Loki multiple times and to powerup himself to match him:
Had to use another named attack to attack the same spot he had wounded, etc. And there was a fight going on while we didn't see, we know from the various cuts.
There is surely a gap, but Loki did well, considering he wasn't even in hybrid form.