If the diamond cut is too shallow, entering light strikes the pavilion facet at a low angle and passes through the facet (refracts), escaping through the bottom of the diamond.
If the diamond cut is too deep, entering light strikes the first pavilion facet at an angle sharp enough to reflect to the second pavilion. But the light strikes the second pavilion at too low an angle, causing the light to refract (pass through the facet), escaping through the bottom of the diamond.
In a well cut diamond, the light strikes each pavilion facet at an angle which allows most of the light to reflect back to the crown (top). As it passes through the crown facets at a low angle, the light refracts upon exit. In this case, refraction is a good thing, as the bent light travels to the observer's eye and is perceived as a lively fire.