Well, not altogether , but it will cause it to heat up and could cause shifting problems. You need to take your vehicle to a Certified mechanic and have that line replaced and have a transmission service. Think you'll be fine after that!
A pinched transmission coolant line can stop the car from shifting because it can cause the car to heat up. The transmission lines are one of the problems that are referred to as non-major repairs although they can scare you when your car doesn't shift at all. You need to consult a mechanic for assistance.