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According to Chris Sheridan, the Cavaliers are looking to trade Larry Hughes.
Brian Windhorst also suggests that the Cavaliers are interested in trading him:
“This is true and this has been true since the trading deadline when Danny Ferry openly told the media that he had conversations about every player on his roster with the exception of LeBron James. Make no mistake, the Cavs could trade Hughes, he is not totally untradeable as many suggest.”
The Seattle SuperSonic have three point guards after they picked up Delonte West in the Ray Allen deal. The Cavaliers have been interested in West for a while and they might try to get him from Seattle.
Source: Brian Windhorst Blog.