Variables don't actually hold an object, but simply hold a reference to one. By assigning u to null, you're dropping the reference that u had to the object.
A more basic example:
var x = { 'name': 'Bob' };
var y = x;
console.log(x); // Object { name="Bob"}
console.log(y); // Object { name="Bob"}
y.name = 'Jack';
console.log(x); // Object { name="Jack"}
console.log(y); // Object { name="Jack"}
x = null;
console.log(x); // null
console.log(y); // Object { name="Jack"}
Note how our object isn't held in x. It's held somewhere in memory, and x is referring to it. When we do y = x, we copy the reference to y, and therefore y begins to refer to the same object. Setting x to null simply drops the reference that x holds to the object, leaving the actual object unaffected. If we were to set y to null, or to anything else, the garbage collector would eventually pick up the object for destruction.