This is not true. Retraction means you withdraw endorsement of the story and cease to publish new copies of it. It does not mean you pull it from view. Likewise, retracted scientific papers are not expunged from the websites of scientific journals. See for instance this:
http://www.jbc.org/content/283/45/31012.full
You can tell infer that this is the correct use of the term "retract" because daily newspapers retracted stories long before the internet, when it was obviously impossible for them to do anything besides removing endorsement and admitting error.
Paper newspapers had no physical way of doing the latter without literally pulling every copy in existence, which would be impossible once it's been released (as you also pointed out). Because of that, you can't really infer the correct use of the term based off what they did. Furthermore, languages evolve, so even if that was the only "correct" use of the term back then does not mean it's also the only use today.
https://www.google.com/search?q=define+retraction
1. the action of drawing something back or back in. "prey are grasped between the jaws upon tongue retraction"
2. a withdrawal of a statement, accusation, or undertaking. "he issued a retraction of his allegations"
In traditioal practice, it means "Adding a Retraction tag". In CS terms, it's a soft-delete.
For a very famous example:
https://www.thelancet.com/journals/lancet/article/PIIS0140-6...
There is a big difference between trying to get accurate or false information removed from the web.
According to the retraction note, this was not a minor technicality. The reporter failed to talk to the other party in this story (the purported author of the malicious website) and apparently mischaracterized the nature of the website.