Cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding the RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a significant short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform is examining the claims and will always investigate signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation.
ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The little-known RaveDAO project experienced a massive price surge, with over $44 million in RAVE positions being liquidated in a single day, primarily due to bearish positions.
The short squeeze highlighted the concentration of RAVE tokens, with nearly 90% of its supply held in three Gnosis Safe wallets. Investigators also identified token transfers to exchanges shortly before the price surge. RaveDAO, a Web3 project focused on electronic music events, has hosted several events and reported $3 million in revenue in 2025.
However, the token's market behavior has been volatile, with its price surging from $0.30 to over $6 in a single day before receding. The token's market value briefly exceeded $6 billion before dropping. A claim has emerged that the project may have engaged in a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions. RaveDAO has denied any involvement in the recent price action, stating that it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth.