too bad hes going back to oklahoma city, chandler failed his physical
Well, right. But OKC is going nowhere, and Smith is an expiring contract. That's why people expect a buyout (which has been rumored in the media, if another trade isn't made).
If Smith went to New Orleans, there's no shot that he would be cut. Going back to OKC, though, the chances of a buyout increase exponentially.