She planned to do only Skate America, but a bunch of European federations full of Europeans who thought they were above liking Kwan's skating, but not above the money they could make off of her went whining to Speedy about it because they wouldn't get a piece of the pie if she only competed in the USA. He made up some non-rule on the spot (read: had not been approved by the ISU Congress) saying that the top 6 skaters at the previous Worlds were required to compete in at least two GP events or none at all, meaning that Kwan and Todd Eldredge, who was skipping the GP but was scheduled to perform an exhibition, were kicked out of SA because they were both seeded. I think they also threatened to sanction the USFSA and ban Kwan from Worlds if they let Kwan compete at just SA, so the USFSA backed down.
That was 1997 Worlds. In 1999 she fell on the double axel.