Yes, his 2012 happened, long after the Reds moved him and every other team in baseball had a chance to bite his apple.
Seems to me the Reds scouted this one perfectly. Encarnacion was not going to stick at 3B and had no long-term place with the Reds. So the team moved him for a 3B who proved to be an immediate and perfect fit. With that deal, the Reds made the decision that it was time to stop the endless rebuilding cycle and to start behaving like a grown up, contending team. It worked. Pretty good self-scouting/awareness when you get right down to it.