Solar flares produce sources of localized, enhanced X-ray emission, thought to be due to the acceleration of nonthermal electrons and the transport of energy away from the reconnection site. The 2002 November 28 C1.6 limb flare showed clear X-ray source motion in the Reuven Ramaty High Energy Solar Spectroscopic Imager observations at 3–10 keV propagating from the apex of the flaring arcade, down toward the footpoints, and then rising back into the corona. Previous work attempted to model this motion using simulations driven by heating with an electron beam or thermal conduction front, finding reasonable agreement only if there were large initial densities. This work extends the previous model by considering a flux tube that retracts through a current sheet away from a magnetic reconnection site. The retraction model includes drag to slow motion in the current sheet, which allows us to vary the energy released by the retraction. This retraction causes a dense and superhot plug of material to form at the loop apex, naturally causing a thermal X-ray source to form in the corona. We find that the observed X-ray source motion, however, is most likely thermal and a signature of the evaporation fronts after initially filling the flux tube.