First, an example:
~ $ ls
~ $ mkdir foo; cd foo
foo $ pwd
/Users/person/foo
foo $ ls
foo $ touch file1 file2 file3
foo $ ls
file1 file2 file3
foo $ rm *
foo $ ls
foo $ rm -r ../foo
foo $ pwd
/Users/person/foo/
foo $ touch file4
touch: file4: No such file or directory
foo $
What happens when you delete the directory you are currently in? Why am I still in a directory that doesn't exist (I assume it doesn't exist solely because I cannot write into it)? I imagine it has something to do with a pointer of some sort.