The State Department sent out a memo to all embassies and consulates on Wednesday, ordering them to rescind all invites. In the interest of making sure the embassies got it right, the memo included: "For invitations which have been extended posts should make clear that Iranian participation is no longer appropriate in the current circumstance. For invitations which have not been extended, no further action is needed." Ah, yes... thus the word "rescind." It's kind of difficult to take back that which has not yet been offered. It's kind of fun to think about, though... a disinvitation saying, "Not only were you not invited, now you're sooooo not invited!"
CNN reported that Hillary Clinton made the decision and then informed Obama. I'll bet that went over well.
I, for one, am breathing a sigh of relief. I was really worried about the hot dog situation.