Why in the world did that deer not die.
Because the hit was not lethal!
The pentetration was not as deep as you thought and the area hit was probably more to the bone and muscle side of the " spot." Don' t beat yourself up. That type of hit happens to the best.
However, you better take a hard look at the type of broadhead you are shooting. If it is a " mechanical," you can probably mark up another vote
against the reliability of mechanicals.