It has been confirmed that Jeff was actually fired from WWE for refusing to go to Rehab. The details are unknown as to why WWE was going to mandate him to go to Rehab, but he was given 2 choices: Either go or be fired. This was confirmed shortly after the original publication of the article by Sean Ross Sapp.
Following the incident that happened this past weekend where Jeff Hardy walked off during his tag match, it has been confirmed that Jeff has been released from his WWE contract effective immediately per Sean Ross Sapp from Fightful. The exact reasoning as to the reason for his release are unknown, but speculation has been running rampant since Sunday when he was sent home from the WWE Live Holiday Tour in Corpus Christi, TX. There is almost certainly a 90 day no compete clause, which will expire on Wednesday, March 9th, 2022 assuming the release happened today (December 9th, 2021).
Jason’s Jest: I covered my theory’s as to what happened, and it does seem like the most probable scenario that this stems from a backstage issue. As stated in that article, Jeff was to debut Willow on SmackDown immediately after being moved to SmackDown following the Draft, but WWE pulled the storyline last minute and instead paired him up with Drew McIntyre as a tag team. This is far from the first time WWE has pulled out the carpet from under Jeff when a concept has been developed and green-lighted, however, this appears to have been the breaking point for Jeff this time around. I certainly hope that is the case and it’s not something worse. (Written prior to update)
Update: All I can say is wow. I hope this is nothing major and just a minor setback. As I stated in my article, he has been doing incredibly well overcoming his addiction for 2+ years now.