Wood is porous and easily absorbs moisture, unfortunately, the majority of homes and their structure is made out of wood. If you notice warped paneling in your basement, it is a sign that excessive moisture exists and you need to get the problem fixed immediately to avoid further damage.
The good news is that once you find the source of the problem, you can remove the warped paneling, address the source of the moisture in your basement and the new paneling you put up will be protected. On the other hand, if you allow the problem to persist, you may see signs of a chalky white substance, it will probably smell like a musty odor and you may find that your problem gets worse over time. In addition, these problems can create health issues for you and your family in typically healthy adults and children. Maintaining a dry environment and being proactive when signs and issues do occur will help keep your home and family same and free of moisture issues, which could cause mold, mildew and eventually health problems with long enough exposure.