Source: Wrestling Observer Newsletter
In what was an expected moved, The Wrestling Observer Newsletter is reporting that WWE has released Dionicio Castellanos (Psicosis) last week. The decision was made to fire him two Fridays ago on October 13th, although the actual official firing is expected to be announced later in the week by WWE. WWE is awaiting all the details of his recent arrest so that they can have them on file before they actually let him go for legal reasons. His profile page still remains on WWE.com at the moment.
Psicosis is expected to go back to AAA and feud with another wrestler named Psicosis - the feud he was involved in prior to signing with WWE in 2005.
Those close to the situation say that he's recently had problems with his wife. Psicosis had been staying at home far too much since WWE wasn't using him and he was depressed about that, especially considering that the downside of his contract only paid him $500 a week when he wasn't working. Psicosis' last WWE appearance occurred at the 7/18 SmackDown tapings in a loss to Super Crazy.
Prior to his termination, Psicosis was told that he was going to be brought back to WWE with a new gimmick. WWE officials asked him to a grow a mustache like a stereotypical Mexican Revolution general from a century ago (think Pancho Villa) and he would come to the ring with a gun belt.