English Class and N-1680

[Jowgen]

Alright so i've been reading over his effect text of N-1680 and it says "Valid: When a Jutsu this ninja is using is negated, if this ninja is injured, discard it."

Now what was bugging me about this is what is the "it" in the effect referring to because the placement of the commas lead me to belive that "it" is refering to the jutsu since Jutsu is the subject of the sentence. Meaning that if the ninja uses a jutsu like Liger Bomb and it gets Frog ***ited for example, it(the Liger Bomb) would be discarded instead of just going to chakra and this ninja would stay on the field. Is this a correct understanding?