Flexi Says: Crenation refers to the scalloped or notched shape around the edges of a cell. This process occurs when the cell loses water through osmosis. An animal cell undergoes crenation when placed in a hypertonic solution. However, cells with a cell wall, like plant cells, do not lose shape when placed in a hypertonic solution; instead, they undergo plasmolysis. In this process, the plant cell wall does not collapse, but water is lost through the cytoplasm leading to the shrinking of protoplasm and creating gaps between the cell membrane and cell wall.