The $1000 is only if the person is involentarilly bumped off an operating flight because of an overbooking. If the flight is cancelled withen 12 hours, they get a refund.
CANCELLATIONS
All customers whose flight is canceled by JetBlue will, at the customer’s option, receive a full refund or reaccommodation on a future JetBlue flight at no additional charge or fare. If JetBlue cancels a flight within 12 hours of scheduled departure and the cancellation is due to a Controllable Irregularity, JetBlue will also provide the customer with a Voucher valid for future travel on JetBlue in the amount paid by the customer for the roundtrip (or the oneway trip, doubled).
OVERBOOKINGS (As defined in JetBlue’s Contract of Carriage)
Customers who are involuntarily denied boarding shall receive $1,000.