In a major development, Binance and Bitget have launched investigations into trading activities surrounding RaveDAO’s RAVE token. The token was at the center of a dramatic short squeeze, leading to a remarkable 4,500% increase in value over a week. This surge resulted in over $44 million in liquidations within a single day and saw the RAVE token’s market value temporarily exceed $6 billion. The investigations are focusing on potential irregularities and insider activities that may have contributed to this unusual market behavior.
The RAVE token experienced an extraordinary short squeeze event, characterized by its rapid and extreme price movements. For most of its history, the RAVE token traded below $0.50. However, in a sudden market upheaval, the token’s price skyrocketed from approximately $0.30 to over $6 in just one day, and subsequently soared beyond $27 before starting to recede. This rally marked an unprecedented 4,500% increase over a week.
This dramatic surge also correlated with significant trading actions, including over $44 million in liquidations in a single day. Additionally, prior to the price spike, millions of RAVE tokens were reportedly transferred to exchanges, raising suspicions of coordinated market behavior.
Further compounding the intrigue, it was found that nearly 90% of the RAVE token supply was concentrated in just three Gnosis Safe wallets. Such concentration of supply in few wallets often raises concerns about the potential for market manipulation. As the token’s price began to decline, it fell more than 50% from its peak and experienced a 30% decrease in just the last 24 hours. This sequence of events has prompted significant scrutiny and ongoing investigations by major cryptocurrency exchanges like Binance and Bitget into the nature of the RAVE token short squeeze. These investigations focus on analyzing market dynamics and trading patterns that led to this unusual activity.
Binance and Bitget have both initiated investigations into the activities surrounding the RAVE token short squeeze. Bitget CEO Gracy Chen confirmed that the exchange has “started investigating” the incident to better understand the events that transpired. Binance, under the leadership of CEO Richard Teng, emphasized its commitment to investigating any signs of market misconduct, indicating the platform will “always” do its part in such circumstances.
The investigation into the RAVE token’s trading anomalies has been partly driven by blockchain influencer ZachXBT. He has alleged that insiders orchestrated the short squeeze that took the market by surprise. In his efforts to uncover the truth, ZachXBT mentioned Gate and has offered a $10,000 bounty to encourage whistleblowers to provide additional information. These actions aim to reveal any manipulative behaviors or misconduct that might have led to the unusual trading patterns observed with the RAVE token.
RaveDAO, the organization behind the RAVE token, reported approximately $3 million in revenue for the year 2025. There have been community reports linking the project to other entities such as ARPA and Bella Protocol. However, these connections have not been independently verified.
In response to the recent trading volatility, RaveDAO issued an official statement asserting that the team is not engaged in, nor responsible for, recent price action. This statement aims to clarify the organization’s position concerning the dramatic price moves in the RAVE token.
