Just my opinion but he should be paid every penny that was guaranteed, hence the word guarantee. But none of it should count against the cap since it wasn't the fault of the team and they got no benefit from it.

It doesn't work that way, though. If it is guaranteed it counts against the cap. Cut and dry. You can't have it both ways. That is a certainty. The ONLY way to keep it from counting against the cap is to void it in some manner.