Hi,
good question.
This command forces the router to send out all LSAs in its database (learned and self-originated) after setting them to MAXAGE. Here is what happens when this command is issued:
1) The router marks all LSAs as MAXAGE and sends them out.
2) The actual originators of those LSAs now receive these LSAs and re-originate them.
3) Effectively you're refreshing the OSPF database of the whole area.
Here is a small piece of documentation from Juniper's website:
(Optional) Discard all entries in the link-state advertisement database. All link-state advertisements are set to MAXAGE and are flooded. The database is repopulated when the originators of the link-state advertisements receive the MAXAGE link-state advertisements and reissue them.
link: http://www.juniper.net/techpubs/en_US/junos10.1/information-products/topic-collections/swcmdref-protocols/topic-19017.html
cheers,
ankit