I've seen that stance before, mainly when the local feral cats are hunting and threatening voles (field mice). Weirdest-looking thing I ever saw. :-)
Yes, a cat will stand and toss up a victim to prolong the killing because they think it is fun, but it is very quick. The cat will only stand when the option of running away looks more dangerous than staying to fight, or, of course, if it is being puppeteer-ed.