Certainly that piece of brass was too soft to withstand resizing. This is one reason its preferable to anneal after resizing. I once tried annealing before reworking .30/06 brass, in an effort to reduce the number of case failures when making 9.3X62, which requires expanding the '06 neck to .40" to produce a false shoulder, then neck size to .366" and fire form. Suffice to say it was a failed experiment, which resulted in accordioned brass, looking much like yours. Then again, if its only happened to you the once, and you feel better annealing before resizing, carry on, if you're prepared to accept the occasional lost case. One out of 100 .223s isn't a financial disaster, although it might upsets the balance of 100 primers and bullets per 100 brass, but brass is ultimately consumable.