"Foldback" is a current limiting feature (overload protection) of power supplies and power amplifiers. When the load attempts to draw overcurrent from the supply, foldback reduces both the output voltage and current to well below the normal operating limits. Under a short circuit, where the output voltage has reduced to zero, the current is typically limited to a small fraction of the maximum current.
SMPS uses a feedback loop from the output back to the input side of the SMPS. If the supply exits normal operating limits, the driving circuit shuts off the supply. after a short rest period, the supply will attempt to restart.