Ok so tell me how it actually works then...
The current in the motor is only connected to the current in the power supply _sometimes_ and other times it just cycles out of one phase and back in the other. This is what the modulation magnitude is (sometimes people call this duty cycle, but that's a bit confusing because we use SVM not straight PWM). When the modulation magnitude is 0, the average voltage seen across the motor phases is 0, and the motor current is never connected to the power supply. When the magnitude is 100%, it is always connected, and at 50% it's connected half the time, and cycled in just the motor half the time.