We present direct molecular dynamics simulations of shock wave propagation in liquid deuterium for a wide range of impact velocities. The calculated Hugoniot is in perfect agreement with the gas-gun data as well as with the most recent experimental data. At high impact velocities we observe a smearing of the shock wave front and propagation of fast dissociated molecules well ahead of the compressed region. This smearing occurs due to the fast deuterium dissociation at the shock wave front. The experimental results are discussed in view of this effect.