One of the capitalization gestures has been removed in a recent update of Swype. This gesture was to capitalize Swyped words by swiping up from the keyboard.
This change was the result of software development process, however, we understand that this change has not been welcomed by Swype community. At this point, we are internally discussing the possibility of bringing back this feature.
We appreciate your patience on the matter, please stay tuned at Play store for updates.