The guy who made mistake was Zeke Miller, who is pretty straight up and who immediately tried to correct it and apologize. It was other media that went hog wild with the original report.
Via Twitchy:
President Trump returned the bust of Winston Churchill to the Oval Office, fulfilling a promise he made during the campaign. But the move set off a wave of speculation over what happened to the bust of Martin Luther King Jr. that President Obama had moved into the Oval Office to replace Winston.
TIME reporter Zeke Miller initially tweeted that the MLK Jr. bust have been removed entirely, but his first report was wrong.