There's still a chance the teams re-open trade talks, Wojnarowski reported, but if Minnesota can't work things out with Miami, it might be in trouble.
Miami had reportedly backed off its claim to not include guard Josh Richardson in any possible deal for Butler, though it all broke down when Minnesota came in late with its want to add a sweetener.
"Talks between the two teams could restart again, but it appears there would need to be a resetting process, league sources said".
"Minnesota has been engaged with no serious talks elsewhere on Butler, with teams believing that a Miami deal was inevitable and the Timberwolves steep asking price often remaining a non-starter in talks", Wojnarowski wrote, citing league sources.
Thibodeau has said Butler's situation is "fluid" and has repeated many times over the last few weeks that he will make a deal as long as a good deal materializes.
He is entering the fourth season of a five-year, $92.3 million contract he signed with Chicago in 2015, but he can enter the free agent market next summer by opting out of the final year.
Every trade in every sports league is influenced heavily by leverage, and the current Jimmy Butler trade talks going on in the National Basketball Association right now are no exception.