When you give yourself an item (not air) with a data value higher than 2^16-1 = 65535 you get air instead. I would expect the command to fail instead.
Note: 2^16 is the number of values a short can have. But as the Damage tag is a signed short, this value does not make any sense in this context.
Based on 1.11 decompiled using MCP 9.35 rc1