EDIT: The Rapids Twitter account has confirmed that something much better is in store for Yamada/Smith, as Smith is actually going for US Residency right now and could be ready by Wednesday! Awesome news.
There has been a bit of a problem in the past few MLS Superdrafts when it has come to international players; nobody has wanted to draft them. It happened to guys like Daniel Keat and Michael Boxall in the 2011 draft and more recently to Kohei Yamada, seen by many people as late first round talent, in the latest 2012 draft. The reason is obvious, they're guaranteed a contract but still take up an international slot.
That's why when the Rapids picked up Yamada in this season's supplemental draft, it was lauded as a brilliant selection by the Rapids, since they had cleared a lot of international slots to be used. Unfortunately, coach Oscar Pareja took the opportunity to snag a bunch of international talent out of South America right afterward and now they're in a jam with their spots.
That brings us to now, when Jamie Smith is looking to get back on the first team squad but can't find a spot. The scotsman is a big part of the team, so somebody needs to go, and that unfortunate soul is probably going to be Yamada. Both players were left out of the starting 18 players against Vancouver, which makes it look like that move could come sooner rather than later.
Awful news for Yamada, but he's a talented guy and there will surely be another shot for him in this league.