In 474, when Emperor Houfei's uncle Liu Xiufan (劉休範) the Prince of Guiyang declared a rebellion, he manufactured a prophecy in which Shen Youzhi was referred to was prime minister, and had the prophetic writing delivered to Shen, who however declined to join his rebellion, and subsequently aligned with Wang Sengqian (王僧虔) the governor of Xiang Province (湘州, modern Hunan), Zhang Xingshi the governor of Yong Province (雍州, modern northwestern Hubei and southwestern Henan), and the chief of staff of Liu Xie (劉燮) the Prince of Jinxi and governor of Ying Province to attack Liu Xiufan's base at Xunyang, forcing Xunyang's surrender and killing Liu Xiufan's two sons. Liu Xiufan, meanwhile, while sieging Jiankang, was killed by assassins sent by the general Xiao Daocheng, and his rebellion collapsed.