You are using a simulation program, so the question is what assumptions the program makes to simulate the real world? Suppose you replace the diode with a resistor, then reduce the resistance in a series of steps (10Ω, 1Ω. 0.1Ω, 0.01Ω, ....) to see how close you can get to a short circuit before the scope shows some effect. In the simulation, how much current can the signal source provide? Is it programmed as an ideal source?