Players In DFA Limbo

"When a team designates a player for assignment, he is removed from that club's 40-man roster. The team then has a period of time with some ability to impact what is next for that player. This is colloquially referred to as "DFA limbo". The team can trade the player to another club, unless the trade deadline has passed and the new offseason has not yet begun. The team can also place the player on outright or release waivers."

"Or at least that's the case for most of the year. It's different around the holidays, with several instances in recent years of players being in DFA limbo for longer than two weeks. For instance, catcher was designated for assignment by the Rangers on December 23rd of 2024. He stayed in DFA limbo until he was claimed off waivers by the Giants on January 8th of 2025, 16 days later."

Designating a player for assignment removes him from the club's 40-man roster and begins a window for trade, waivers, or release. Teams can trade the player unless the trade deadline has passed and the new offseason has not yet begun. The team can also place the player on outright or release waivers. The waiver process takes 48 hours, giving teams a maximum of five days to arrange a trade, producing a typical DFA period of up to seven days. Around late December and early January a freeze appears to stop the DFA clock, causing limbo periods that can exceed two weeks.

Read at MLB Trade Rumors