Dakich interviewed players and staff, and discovered hints of a possible violation regarding a player, which BlueGoldNews.com has learned is freshman guard Jonathan Hargett.
Dakich then communicated that information to WVU Athletic Director Ed Pastilong, who immediately convened an investigation and notified both the conference and the NCAA.
BleuGoldNews.com has learned that Pastilong, WVU compliance Director Brad Cox and several players have since talked to the NCAA.
Dakich apparently had second thoughts about taking the job, and despite efforts from Hardesty, decided against signing the contract.
Hardesty said that WVU will continue the search for a new coach, but that they will not be in a hurry to fill the position. Hardesty did say that University of Cincinnati head coach Bob Huggins' name "has resurfaced" in the search.
One WVU player, forward Josh Yeager, siad he had no idea that the resignation was imminent.
"Coach came in to the workout this morning and told us he was leaving. He didn't say much else."
A meeting for the players is set up for either noon or 12:30 this afternoon.