It works this way suppose I am a senior citizen and I book ticket under LB Quota.. Now the status of the train is in WL and LB Quota has been exhausted.. Now a senior citizen travelling alone will be alloted ticket in WL, now when I cancel my ticket booked under LB Quota, at charting that seat will be given to WL Senior citizen passenger..
When LB Quota seat is cancelled, the status WL status of ticket does not change..