We report experimental evidence for molecular deformation due to a vibrationally active transition state of multiply charged acetylene molecules under the impact of low energy Ar8+ projectiles. "Butterflylike" structures are observed in the experimental coincidence spectra between hydrogen and carbon ionic fragments. Such structures can be generated by numerical simulations and are found to originate from the bending motion of the dissociating molecule. Angular distributions for dissociation products from triply charged C2H2 ion are reported.