Many reasons could come into play as to why the breaker didn't trip, to not blame the breaker right off bat is how long is the service from the transformer, how long was this run from the breaker, is there a loose or weak connection, how fast did the blade go through the wire, is the breaker thermo magnetic, thermo only can take a while to trip.
Many forget resistance is current limiting and a long service run while providing enough current for the loads on it might be limited as to how much current can pass through it, if it was close to the breakers trip curve it might never trip add the resistance of the arcing as the blade goes through the wire and again it may never trip, I have seen people cut through branch circuits fast enough with strippers that never trip the breaker or even arc the blades, all depends upon how much fault current is available at the point of the short and how long the short is made.