Let me start by apologizing for my wording on the post this morning, I ran a post with the headline "Carlos Condit Vs. Nick Diaz Rematch Becomes Official Amid Managerial Confusion." The bout was not official at that point, Dana White had simply confirmed that Condit had agreed to the bout. That was sloppy on my part and I apologize for any confusion caused by it.
It now appears, from reports coming from a variety of different directions, that the rematch will not happen due to an "issue" in the Diaz camp. No one has yet been quite willing to say what the "issue" is, but I've heard it from enough people that it does seem there is something that is keeping the Diaz camp from being able to accept the fight.
The first person I saw reporting that there was a problem was Front Row Brian on Twitter (some tell me he also beat everyone to news of Condit agreeing to the fight yesterday).
Cesar Gracie hinted that something was also going on a few moments ago via his Twitter:
We'll follow up on the story as more details emerge.