Why would a store that's angry with a product manufacturer put their stuff on clearance, especially in this market that's all about installed bases?
Because if they have changed their nation-wide planogram and need to put new product in that shelf space then they need to get rid of the stuff they have already on those shelves and sitting around in their warehouses. Normally it isn't an option to send things back to the manufacturer like that, so they're best off just putting it on 30% off clearance and at least getting back the money they invested in that stock in the first place.
Also, what does Target care about installed base other than maybe selling a few accessories? If they're not moving those products fast enough or making enough profit on them it doesn't make sense to carry it.