What happens to the display if the iBook is closed when Not asleep??

I have read that closing the iBook when it will not sleep is BAD and can ruin the display. Does anyone know what exactly happens to the display in this case??

Yes it was under warranty. My husband took it into the Apple store and they told him that the type of damage that our screen had was obviously because of an accident and that voided any warranties on the computer all together so it would not be covered.
I know that there was no accident since the computer was sitting in a home office between the time I used it last until the time my husband went to use it 17 hours later. No one else was home. He noticed that the computer was not sleeping when it was closed also.
That is why I am interested in the type of damage that occurs to the screen. I have seen several times in these discussions warning not to close a screen if the computer will not sleep. These warnings usually link to a warning from Apple that doing so will cause damage to the screen.
I'm just sick at having to purchase a new iBook when the old one was only 4 mos old.

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