Old Jin was already preparing to die. ( That's why he got all supplies for Xuan Yue).He was going for some ultimate sword skill( I think) to kill Xiao Jifeng and die along with him. But he couldn't even land a proper blow on him( Idiom used here is actually throwing eggs at rock- meaning his efforts were futile because Xiao Jifeng was that powerful)And his soul shattered when the sword broke.
When I first read it I resented Xiao Jifeng so much for killing Jinjin. But it was not exactly his fault that he died. So, I take back all the curses I threw at him.
(My long ass reply to a simple question)

Do you mean it was oldjin's soul that died and was crashed with the sword?