It looks to me that it is fracturing rather than shearing the candy. If the candy is hard like a candy cane then fracturing would make more sense.
Either way, it's effective although I suspect that it would be easy to design a machine to do it. Small candy makers, though, like to use the old ways. I remember salt water taffy pulling machines on the boardwalk in Atlantic City that had patent dates in the 1880s on them.

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