I don't know why you think that; it's definitely working as intended. The attack is two-stages; the lightning and the face grab. The lightning hits from full screen, pulling them forwards and into the ground, giving Raiden control of the entire top half of the screen with this move. If they're close enough, the lightning will pull them into Raiden's grasp for the followup animation.
It's a really, really good move, just everyone is too busy obsessing over mid screen combos for a character that is designed to place you in the corner whenever he wants.
Also, female hitboxes.