Over the past decade, cold spraying (CS) has become a significant additive manufacturing technology for creating metallic structures and repairing damaged components. This study uses a novel peridynamic model to investigate the behavior of 12 μm copper particles impacting a copper substrate during CS deposition. The model examines deformation behavior, material jetting, and the effect of a native particle oxide layer. Two oxide thicknesses, 6 nm and 30 nm, were considered. The 6 nm oxide, typical for gas-atomized copper powders, had a negligible effect on deformation, while the 30 nm oxide showed a notable influence. For the 30 nm oxide, the experimentally observed coefficient of restitution (COR) deviated from theoretical predictions in the velocity range of 400–600 m/s due to cracking and fracturing of the oxide layer at higher impact velocities, reducing particle rebound velocity without sufficient metal-to-metal contact for permanent bonding. Permanent adhesion requires significant oxide fragmentation and separation. The study also identified threshold velocities for material jetting from the substrate and particle, showing that oxide presence delays particle jetting by impeding plastic deformation at the edges. Quantifying the oxide volume at the particle-substrate interface clarifies the effect of jetting on COR and bonding strength. The analysis includes effects of deflected jets at extremely high velocities (e.g., 870 m/s), compared with existing literature. Overall, the results demonstrate the efficacy of the peridynamics-based simulation in accurately representing material behavior during high-velocity impacts, effectively predicting oxide breakup, detachment, and removal in CS, and their effects on deposition characteristics.