I hope the Denver -7 is wrong but I just don't think the team will be up for a game like this
Vegas doesn't create lines to correctly guess the outcome, but rather to make the action even on both sides. Even action in most cases means profit (you have to bet $11 to win $10)
Lines move when something significant happens (injuries, weather, PGs getting arrested for trafficking) or to even lopsided action.
The spread against the Bobcats means more money is on Denver (home team, seeding, RPI/Sagrin/SOS/WAC v MAC/didn't just shoot miserably)
I'm not saying the Cats should be favored, but Vegas lines are not intended to be correct predictions of the outcome.