The same happened with the reports of the radar capturing it drastically off-course. First it looked like a sure thing, and then it was eventually completely denied. Perhaps that's just a symptom of such an intensely-analyzed ongoing news story, though.
I do feel a bit sorry for the Malaysian government. They don't get to control what the media prints, but are expected to immediately confirm/deny everything (difficult with the volume of reports they are likely dealing with!), and to some extent get chastised when the media prints stuff that later gets busted.