I designated a guy 10 days ago. Tho' I didn't mean to I had him on reversible waivers so when he was claimed he came back, almost. He is hung on the "Needing Assignment" page and I can't get him off. When I try to assign him to AAA I get "Alejandro Melendez may only be assigned to the big league team due to his current contract and option status." When I try to assign him to BL I get "Alejandro Melendez may not be assigned back to the big league team since he was designated for assignment. You may trade him, release him, or assign him to a minor league club if he clears waivers and accepts the demotion."  I have a trade deal set up but since the  guy is not on a roster that doesn't work either. I really don't want to release him since he has another year on his contract. Any suggestions?
Hardball Dynasty – Fantasy Baseball Sim Games - Player Profile: Alejandro Melendez

I think you need to waive him again, and hope that your trading partner claims him. Did this happen to 'straddle' the transaction deadline?

Unless the trade brings something you can actually use why not just release him? That seems the simple solution.   He's a pretty not good RP who can't throw many innings or very often.  Certainly you won't miss his ERA of 6.....or his career mid-4's.    He's got a bad year on the contract, sometimes you just have to eat it.  I wonder who claimed him.  They must be hard up for arms.

Never release a guy - why pay him to play for someone else?

release him if you've got somebody better

He's not clogging up a roster spot.   Releasing him is pointless.

He's not clogging anything except the pending assignment box. I did waive  him, again, and he cleared. I still can't move or assign him. I guess simmy will release him sooner or later. If he is released, by me or simmy, even if he's claimed I still pay him, right? That sucks, never paid somebody to play somewhere else before, you could go broke that way.

I think it's just that you need to waive him again and wait to demote him. you said you had a deal worked out, is it with the team who claimed him? because no one else can acquire him, situation doesn't make sense

yea, it's with the team that claimed him and as I said already, "I did waive  him, again, and he cleared. I still can't move or assign him".

Designate for assignment.   Players who refuse demotion after being waived will accept the demotion if DFA'd.