If you select delete local files but decide to cancel when the confirmation pops up the files will remain on the drive however the torrent is removed from the client and is not recoverable. If you cancel a delete operation the torrent should remain in the list.

Tixati doesn't have confirmation for removing torrent from transfers list. The confirmation is for deleting files only. You can restore a torrent using: Remove > Undo Last Remove, however keep in mind that this works only up to 3 minutes after torrent removal. Also, if you remove two torrents one by one, only the last removed torrent will be recoverable by this function, however it you remove multiple torrents simultaneously, all of them will be possible to recover.

On my windows 7 machine when I cancel the delete I must then go to the recycle bin and manually move the file back to the download directory. For some reason the torrent is restored but not the file. I suspect this is a windows problem on admin privileges. There seems to be a state where even though you are logged in as admin windows knocks you back to none admin. It will give you admin but only with an accept screen and tixati won't have that when it tries to move the file back.

Away to confirm this: Have you ever seen a window that says you need admin privileges to delete this file do you want to continue?
Usually on a file that is stacked on a two folder then file format.

So the torrent is not lost it is in the recycle bin.