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Will I lose the visa application/my place in the queue, or will they just contact me and delay the decision until I get to the right place?
Generally, the latter … but you will need to get Where you need to be within a reasonable timeframe.
 

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Are there factors that will make this more/less likely?
The type of visa being applied for, which wasn't specified in your original post.

For a parent visa, they will contact you.
 

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Thanks for the clarification! Out of curiosity which visa decision would be cancelled when applicant is in the wrong place then? Is it the more short-term ones?
For example … if you applied for an onshore visitor visa to extend your stay and then left Australia before it was granted (and it’s ‘refused’ not ‘cancelled’).
 
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