Buckling wood paneling?

[Vonetta Booker]

Just took a look at an REO that's on the market. There's ugly wood paneling throughout the house, and in several spots large areas of the walls are warping. (This is separate from a couple of spots in the corners of the 1st & 2nd floors where there have obviously been some bad leaks).

For those that have seen this before, what is warped wood paneling a sign of? That there's been moisture in the walls all throughout the house?   (Still in the process of fine-tuning my rehab assessment skills, lol.)