If you trade a player, you still take the same cap hit. For the 4th time, you take the remainder of the prorated signing bonus.
For example:
If you sign a guy to a 5 year deal worth $20 million, including a $4 million signing bonus.
If you release him after 2 years, you are no longer responsible for the contract, but you take a $2.4 million hit against the cap.
If you trade him after 2 years, you are no longer responsible for the contract, but you take a $2.4 million hit against the cap.
So you're still wrong. BTW, you misspelled eighth in your signature.