We managed to confirm with some of our sources that Radeon HD 7850 1GB is indeed EOLed and will not be produced any more. According to our sources, the reason most likely lies in the fact that the HD 7790 gets too close to it, performance wise, and it simply does not make sense for partners to have both cards.
Back when we first wrote about the HD 7790, AMD was planning to force its partners not to make factory-overclocked versions as it could cannibalize the sales of the HD 7850 but it looks like it was easier for partners to simply EOL the HD 7850 and stick to reference and factory-overclocked HD 7790 models.
Although there are some rumors that the HD 7850 EOL reason lies in the memory chip availability, our sources suggest that it is highly unlikely as that would influence some other cards as well and the real reason is exactly the HD 7790.
On the other hand, a quick check and our sources reveal that the HD 7850 1GB is still widely available and there are is still plenty of stock so it will stay with us, at least for a while.