By Margeaux Watson
Updated October 31, 2008 at 10:07 PM EDT

What’s up with Danity Kane? That’s the question all of their fans have been asking ever since Diddy ousted Aubrey O’Day and D. Woods from the group during the live season 3 finale of MTV’s Making the Band 4 on Oct. 14. I was on the scene at MTV’s studio in Times Square that night and spoke to one of the remaining members, Shannon Bex, after the cameras stopped rolling. Though she seemed genuinely stunned by Diddy’s decision, I suspected that it was all just a PR stunt.

Well, now I have confirmation from an insider that the drama is for real and remains unresolved. “It was not fake or scripted in any way,” says my source, who also told me that fledgling R&B singer Cassie (2006’s “Me & U”) will not be joining DK. “Puff is very much done with Aubrey, like, completely, but I could see him putting D. Woods back in the group, maybe. There’s a rumor that Shannon quit, but I wouldn’t go so far as saying it’s true. She expressed some unhappiness about how everything was going and she might’ve had a momentary breakdown. As for the other members [Aundrea Fimbres and Dawn Richard], I don’t think they know what to feel because nothing has been decided. For now, Puff is focusing on his new show for MTV, StarMaker, and finishing his next album while he figures out what to do with Danity Kane.”