Yeah, I'm having trouble understanding why Orlando would do this. The only thing I can come up with is:
1. They must have been holding off on the Denver deal until they could confirm with 100% certainty that Cleveland deal wasn't going through.
2. They found out it wasn't going to go through, or gave the Cavs and ultimatum, and Cavs didn't do the deal.
3. They went with their back up plan, trading to Denver to free up cap room - potentially to make a free agent run or to absorb contracts for more assets next year?
If those three are true, that means:
1. Either the Sixers or the Jazz have a deal in place with the Cavs and Orlando bowed out.
2. The Cavs were just messing with everyone, aren't going to trade the pick.
I lean towards #2 - I think the David Locke, "Favors was never a key part of the deal" quote, plus the Orlando moves, plus a recent Chad Ford tweet all indicate Cavs are keeping the pick.