That depends on the window manager. The application state is not really affected, it just stops updating (redrawing its area). When another window moves away, the window manager asks the "underlying" application to update that area of the screen. It's dead, so the WM keeps displaying the last thing that was there, until something else happens in that spot.
On the other hand, compositing window managers will dedicate a separate buffer to each application, where they have exclusive access. That kind of a window manager would not have to ask the application to update anything - it would just take the image from the dedicated application's buffer and update the screen with it. Since the application's buffer can't be modified by anything else, it would have the last state of the application in it. That would in turn find its way to the screen. No glitches.