Camcorders that use CMOS image sensors often use a technology called a "rolling shutter." This exposes different parts of the frame at different times until the entire frame is fully exposed.
If the camcorder is moved before the entire frame is fully exposed, the resulting image may appear distorted. Sometimes, video stabilization may make this distortion more apparent. Videos that show signs of distortion due to your camcorder's rolling shutter may not be suitable for use with video stabilization.