Gas detonation forming is a high-speed forming method, which has the potential to form complex geometries, including sharp angles and undercuts, in a very short process time. Despite many efforts being made to develop detonation forming, many important aspects remain unclear and have not been studied experimentally, nor numerically in detail, e.g., the ability to produce sharp corners, the effect of peak load on deformation and damage location and its propagation in the workpiece. In the present work, DC04 steel cups were formed using gas detonation forming, and finite element method (FEM) simulations of the cup forming process were performed. The simulations on 3D computational models were carried out with explicit dynamic analysis using the Johnson–Cook material model. The results obtained in the simulations were in good agreement with the experimental observations, e.g., deformed shape and thickness distribution. Moreover, the proposed computational model was capable of predicting the damage initiation and evolution correctly, which was mainly due to the high-pressure magnitude or an initial offset of the workpiece in the experiments.