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It could be a worked release like Mat Hardy in 2005 when they let him walk and work a few RoH shows and he came back in guerilla fashion. I don't know, I still think he'll be back sooner than later. Why else would he be working non factors like Evolve and DGUSA,instead of RoH and PWG?
If this is a work, it's brilliant. If it's legit, its overly Blue to dump the most interesting of the NXT guys. I'm thinking it's not legit since, eventhough its reported on the Observer, Meltzer or Alvarez haven't spoken or reported on it.