Why do I look and feel fatter when cutting calories?

You may not be "over eating" per your calorie target, but you failed to tell us WHAT you're eating. Ideally it would be as clean a diet as possible (little to no processed foods). 

DO yourself a huge favor look up the definition of a calorie. You will see it means nothing. Than look up what the human body needs to function. Look at the requirements. Calories s just a unit of measure of potential energy. Nothing more.

Here is why. You are guilty stupidity or going by calories.
What is your protein intake and your carbs?
The human body REQUIRES PROTEIN, CARBS, FAT/OIL and FIBER!!!
Stop calorie count and actually look at what you are eating.
You can hit all those calorie marks and still BE NUTRIENT DEFICIENT. This is why you get FAT on these STUPID CALORIE RESTRICTIVE DIETS.

Maybe you're not and instead of "fatter" you're becoming more "loose" & jiggly! Which is a good sign of weight loss! But if you want to get rid of the jiggle wiggles, I suggest toning the areas some by doing ab/torso exercises like sit-ups & crunches.