Not sure. For that matter, I'm not sure if they lost their "status" as cavalry, or just their pay. But I do know the men of the 28th were very upset about the situation, especially since word from home was that some new cavalry units were being formed, and they felt that they should be re-mounted before that happened.

The main reason for the mutiny was that they were upset about all the trading that was going on with the enemy while they were supposed to be fighting them, but the loss of their horses and the pay cut was also eating at them.