Another example of the media not providing all the information or not doing their homework. Or perhaps in this case the subject withheld information. In the end they only wanted to show that COVID had some sort of impact.
COVID occurred AFTER NLI's were signed. The subject's scholarship was most definitely still available at USC. Also, the NCAA had announced coaches could reduce scholarships to less than 25% and could carry 32 (instead of 27) on scholarship. This happened BEFORE they had to let existing players know what their scholarships would be for the 2020-2021 academic year. So either USC could reduce the scholarship amounts for existing players or they could try to "ditch" new players before they arrived.
The coach probably told him he was not wanted, wouldn't play, or would be red-shirted. So naturally he found another home.