When it fails the OPV will 'pop' and release small bursts of air intermittently, but gas will still be delivered to the second stage allowing the diver to breathe normally.
This will happen rather than free flow through the second stage.
This happened once to my wife, it was hardly a big deal. Easier than breathing through a free flowing regulator.
This is the only "failure" I've ever observed on a Poseidon, so I can't speak to them actually failing closed and not delivering air.
As I understand it a Poseidon will deliver air as I described above vs. other regulators that will freeflow instead. Either one of these situations are manageable.
I've owned different regulators and currently have some Poseidons, my wife has 5 poseidons (that's all she'll dive). I think some of the perceptions of Poseidon regulators might be a bit wrong on the forums.
I travel and move a lot based on my line of work. I only have to worry about mailing my Poseidons in every two years for service. I send them to Tim at Viking Diving in pensacola, FL.
Scuba Toys, Dive Right In Scuba, and Tech Diving Limited in AZ are some others that come to mind that know how to do a great job servicing poseidon regs.
-Mitch