The Travel Bug is no longer in [a cache]. How do I remove it?
Occasionally a Travel Bug is picked up out of a cache but for whatever reason the person who picked it up does not log the find. If this happens, users visiting the cache will often let you know that the Travel Bug is no longer there.
As the Travel Bug owner, you have the ability to move your Travel Bug to an unknown location until it is found again. Visit your Travel Bug's listing on Geocaching.com and choose the option to move your Travel Bug to an unknown location. This will not affect your overall travels and distance calculation.
Cache owners also have the ability to move the travel bug listed on their cache page to an unknown location.