How does Workflow Cancel State work in Vault?
For each lifecycle state, Admins define a Workflow Cancel State.
When users cancel a workflow for a document, Vault checks which state the document is currently in and its selected cancel state. Vault moves the document to the appropriate state. By default, the document returns to the state it was in when the workflow started. An Admin can change this setting.
Note: When the workflow cancels, Vault moves the document into the cancel state without checking entry criteria or performing entry actions for the new state.