Whatever happened must have been pretty serious for him to have been ignored before he went on loan. I think he played 2 games for the first team and according to reports at the time he played very well so I don't think it has anything to do with his football ability.
When things like this occur it leads to all sorts of rumours. I recall the rumours about at least two players who left Ibrox under a cloud for allegedly picking pockets of their fellow players.