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He was not cut as I recall. It was a mutual release from his contract.
http://www.mmafighting.com/2012/10/...personal-issues-forced-him-out-of-ufc-on-fx-5
"They are cutting me," he wrote. "Dana [White] gave me my show and win pay to help me deal with the mountain in front of me. Now I have to go make weight a couple times on the regional circuit. I'll be back to the UFC though, I always am."
He was cut, but it was the most amicable cut I've ever seen.