This has to be a work. As legitimate as the release looks (I just looked up the official release on WWE.com), it just has to be fake.
After what happened on Raw, it'd make sense for the WWE to release some or all of those involved excluding Barrett, who probably has some form of immunity thanks to his NXT win. Remember, NXT is reality-based so it wouldn't surprise me if the WWE posted an official release to make it look legitimate and to fuck with the IWC. We could see the other rookies get released in the coming days, unless Bryan is made to be the scapegoat or something. Bryan could be gone for a few weeks, come back under his real name, and go from there.
However, if it IS real, then FUCK. The only reason for this is that Danielson pissed someone off backstage or something as I highly doubt he'd fail a drug test.
What scares me is that a big reason that this could be real is that, kayfabe, Danielson was never actually employed. He was eliminated from NXT and thus didn't have a contract from the company. From a storyline perspective, it'd make no sense to release a guy who technically never had a contract to begin with. I know the WWE doesn't always apply logic to their storylines, but you never know.
I don't know what to think. Right now, we're at the mercy of the WWE. If this is fake, they're doing a damn good job of making it seem real. They've got us by the balls and we're just going to have to wait in fear and anticipation to see if it is or not. I just hope it isn't.