Brian,
Yes, they do lose books. I submitted in May a 98 New Mutants comic and was submitted properly. What I thought was going to be pressed, then restored with any problems they see, ended up taking 4 months and what I got back was the facsimile version. That's not what I had. I purchased my book in a newstand in a small town in PA 25+ years ago. Excited to see a grading company did this sort of thing I submitted a couple books to try it out before I sent in my holy grail. As for the value, that didn't happen either. I valued the book at $480 and what they offered was $250. I can't find this comic for the price. Good news though!!! They did let me keep the facsimile, which to me is worthless. Take photos!!! I regret not taking any. Once I seen my book was put in their system I didn't think I had to worry.