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With the "Automatically invite from wait list when space is available" option, you automatically invite (and reserve spaces for) people on the wait list when one or more spaces opens up. By adding a response timeout, you continue to invite the next person who joined the waitlist (automatically) if the previous invitee doesn't respond within a time limit that you set. With response timeout, it's first come, first serve amongst all the people invited, which makes this a great option to use to help fill the available spaces for your events. For more information, go to Manage the wait list.
This feature allows event editors to limit the size of the wait list for an event. So if you have an event where you know that a lot more people will be signing up than you have room for, and you don’t want to give false hope to those really far down on the wait list, this is the enhancement for you. To specify a wait list limit, there is a drop down that will appear when you check “Create wait list when fully booked”. The default is blank (no limit). Once the wait list fills, the sign up button text on the calendar views will change from “Wait list” to “Event is Full” by default.