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They're ewoks

Larger and more dangerous in comparison. A lot of animals will see the increase in height and be less willing to attack, and the predators that commonly hunt red pandas are usually not much larger than them to begin with.

Animals are aware of the fact that even a small injury while hunting can kill them through infection. All they really have to do in most cases is make the predator think they're more trouble than they're worth, not that there's no way they can kill them.

In this image, the adversary is not a predator but another red panda, so it's likely a territorial dispute where you're trying to make your competitor think that fighting you is not worth it. Sizing each other up is a common behavior when animals compete with each other, because if it's clear that one animal is larger or stronger than the other, the conflict will usually end in the smaller animal walking away, saving both from potentially deadly injuries.

Animals are nowhere near as savage and mindlessly bloodlusted as people assume.