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Rear headrest gets squashed when seats down - does it matter?

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I have my seat quite far back because I am 1.85 (like 6 foot 3). When I have the rear seat folded down the headrest gets squashed like halfway by my front seat. Does not look like its creasing the headrest or causing permanent deformation.
Is this intended?
 
i mean if you leave it like that always, then yes, it will probably deform the foam and cause a crease. it may return, but hard to say. if you've every installed a car seat and left it in the same place for the recommended 4-5 years, you will have semi-permanent divets from the seat.