Rather, Green bar is the car you're following. Higher the 'fingers' are, the more latency you have to that particular car. red bars means lots of lost info and usually if everything goes red, someone's timing out.
By "...the car you're following" I believe he means the car you are currently viewing. If you tabbed into another person's car it would be his car. If you are in your own car, it would be your's. When you see them all climbing to red, usually someone is about to time out and get disconnected. If you are climbing to red, you may be about to get disconnected. In your screenshot, that would be someone else timing out since they are all going red (unless you are viewing in someone else's car. Then it could be you timing out.)