that seems like a way around the annual scholarship limit (25), but not the total cap of 85. I think they'd still need room under the 85 cap to award the scholarship when the kid arrived.
Another subtlety of this "blueshirting", not mentioned in the article: it seems like the affected player would not be considered a recruited scholarship player, but instead, would be a former walk-on for the balance of his time in school. The distinction there is that a former walk-on can give his scholarship back (or have it taken away), and then no longer count against the cap of 85, even if he stays in school and/or stays on the team. Nice flexibility there.