For example, say you bet on Clayton Kershaw and the Dodgers early in the day as -140 favorites against the Cardinals (+130). But then an hour before game time, Kershaw is scratched with a late injury (and replaced by a much worse pitcher). The sportsbooks would take the game off the board and then might repoen the line at Dodgers +110 and Cardinals -120, based on the pitching change.
If you had bet "action" on the Dodgers -140, you would still be locked into your bet at that same exact price, despite the pitching change. So instead of being able to bet Dodgers +110 at their new line, you would be forced to stick with your -140 bet, which means you got awful odds on the Dodgers. However, if you had bet "listed pitcher" on Dodgers -140, your bet would be voided.
Not all scratched pitchers can affect your bet negatively. Sometimes it can work in your favor. For example, in the instance listed above, say you bet the Cardinals "action" at +130. You would then be locked into that juicy plus-money payout. So even though the Cardinals repoened at -120 after the Kershaw scratch, you would still keep your +130.