Just to add.... (because I have had several problems with with encoder strip/ errors)
There is a scan motor that drives the cutting head. this gives feed back to the printer to tell it where it is on the span of the printer.
There is also a Encoder strip that is the length of your printer, on the print head there is a laser sensor that keeps track of where the print head is.
all in all if you get a hard crash with the vinyl or they do become detatched the reading from the scan motor and encoder strip have a diferent reading and it will shut down so it does not slam the cutting head into the printer head. unfortunately you will not be able to restart where your were. that print is shot and you have to reload and start at the begining. hope it helps.