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How was it dying?
This is a new narrative Colby haters use. You could argue it may have taken him a bit longer to get a title shot, but his career was never in any danger.
He was definitely in a shit situation. There were plenty of rumors that the UFC were going to cut him.
Back then his style was even more unexciting than it is now, and it's not like the UFC haven't cut people on win streaks for being boring.
Dude did what he thought was best to secure his place and make more money. Turns out it was a pretty good move.