Yes, the first sentence of the 5th paragraph under 12.0 makes it pretty clear, thanks Rusty.
So this means that by spending a CP I can inadvertently reduce my effectiveness in melee... If so this might be the only instance in the game where by spending a CP I might actually worsen my position, kind of a 'push your luck' thing.
As an example, if I have a 2nd Line German squad with a FP value of 4, if I roll my 2 dice and get 1 hit, I'm taking a significant risk to reduce that to 0 hits if I spend a CP for a reroll:
0 hits: 36% 1 hits: 48% 2 hits: 16%
Seems like the game is saying that if your men aren't that great (i.e. 2nd Line) and are doing ok on their own (i.e. you get 1 hit) then pushing them through leadership (i.e. spending a CP)is a bad idea because it will often cause them to make mistakes and blow it.