It depends on whether that slot has a waitlist. A slot with waitlist spots keeps accepting people into a queue; a slot without one closes.
- Waitlist set to 0 — the slot's Sign Up button disappears once capacity is reached and the badge reads "Full".
- Waitlist set to a number — the button becomes Join Waitlist, the badge reads "Full — 4 waitlist spots", and people who join get the Waitlist Confirmation email.
When a confirmed spot frees up, whether the attendee cancelled themselves or an organizer cancelled for them, Manifyst promotes the first person on that slot's waitlist right away. They become Confirmed and get the Waitlist Promotion email. There is nothing to approve.
The waitlist size is set per slot, on the event's Slots tab. See Waitlists and Cancellations.