With the OD unconstrained, it may develop a radial fracture as you compress it axially between two planes because of the hoop stress.
PTFE is very nearly a true plastic, except for some strangeness having to do with it being sintered from powder.
To give you an example of the plastic deformation that's possible, I once worked on a line of small ball valves. When you take them apart, the ball seals have spherical surfaces that mate perfectly with the ball, or did before you took it apart. But they're not molded that way; they're cut from round bars in the form of square section rings, and crushed against the ball as the housing is assembled around it (with a big wrench). I.e., the strain is very large, but they survive it.
Of course, just like a rubber o-ring, they're not compressible; you can change the shape of the cavity they're in, drastically, but you can't reduce its volume below the plastic's volume; something else will break. In the case of my ball valves, when the tolerances drifted the wrong way, the brass housing would split on assembly.
Mike Halloran
Pembroke Pines, FL, USA