Chris Chang, MIC Gadget:

With its past experience, one might think Apple would have been able to track that prototype down in a heartbeat. However, Apple was outsmarted. The person who had access to the prototype wiped the phone’s software, thus disabling the GPS hardware needed to track it down. It was then allegedly sold to one of the iPhone case manufacturers for RMB ¥20,000 (about $3,100). We were told that Foxconn was aware of the loss and had penalized internal management for the incident. We also heard from another source that the person who “lost” it was paid to do so.

This would certainly explain a lot of the rumors coming from case manufacturers in the past few weeks.