Ulster Defence Association boss Jim Gray was ousted after his own men turned against him, it emerged tonight.
The flamboyant commander was toppled, along with his lieutenants, in a ruthless move by the paramilitary organisation. Loyalists were tonight waiting to see if would be a bloodless coup or provoke a new shooting war on the streets of Belfast.
One source said: "If the UDA want to be taken seriously and move on they had to get rid of Jim. But if they wanted violence they would have just shot him."
Gray (43), was one of six so-called brigadiers running Northern Ireland's largest loyalist terror grouping. With his bleach-blond hair, heavy gold jewellery and all-year-round tan, he rivalled Johnny "Mad Dog" Adair as the most striking UDA chief. His looks earned him the nickname Doris Day.
But he was removed from control of the East Belfast unit, where his men were known as the Spice Boys, after complaints reached leadership level.
A statement issued today confirmed: "As from 12.30pm March 30th, 2005, the Ulster Defence Association has stood down the current leadership of the East Belfast UDA until further notice.
"To dispel any confusion, the East Belfast UDA are now under the direct command of the Inner Council."
Gray, a businessman with bleached blond hair, heavy gold jewellery and year-round tan, who has been questioned several times by detectives in Belfast, survived an assassination attempt two-and-a-half years ago. A gunman shot him in the face as he went to the home of a murdered rival at the height of a loyalist feud that claimed several lives.
The attack in September 2002 came soon after Adair and Gray fell out during the power struggle. But now both men have been expelled as the organisation, which says it is on ceasefire, attempts to restore its tattered image.
One ex-drinking partner disclosed those who served under Gray became fed up with his leadership style. "The rank and file complained about him and there was an intense investigation over the last few days," he said. "Homework was done to make sure the complaints were legitimate and then the position was clear. Jim's position was basically untenable."
But with a growing public profile, it is uncertain whether he will go quietly.
In November Northern Ireland chief constable Hugh Orde was forced to make a £1,500 payout to him in an out-of-court settlement.
Gray took the action against Mr Orde after he was arrested at a Chinese restaurant in east Belfast. His decision to sue the police centred around their handling of his arrest, which was carried out weeks after he survived the murder attempt.
At the time, former associates described him as one of the most unpopular people in Northern Ireland. And loyalists confirmed today that the move against him had been brewing for some time. "Look at his character and how he carries on," one said. "It's not going to be tolerated any more."
Despite claiming to be on ceasefire for two years, many remain sceptical about the UDA's commitment to peace. Nationalists and republicans insist the organisation, which murdered scores of Catholics at the height of the bloodshed in Northern Ireland, remains nakedly sectarian.
But the British government acknowledged UDA guns were silent last November in an attempt to lure it away from crime and violence and into the political process.