I'm pretty sure Dana has know Dan was hurt since it happened. Dan was going to just fight on one leg, but the commission said it wouldn't clear him. That is why it was such short notice.
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Yeah thats what i got from it also. The doctor didnt allow Dan to fight. Dan didnt back out cause he wanted to back out. There is no way Dana could have guessed that changing the opponent would cause Jones to puss out. There hasnt been a champion that has ever done that after all.