Later that year, the former Emperor Shun was killed by guards who were supposed to protect him, and the Liu clan was soon slaughtered as well.
Historical accounts, written during the succeeding Southern Qi Dynasty, indicate that Emperor Ming was impotent, and that although he had 12 sons, those were the results of his having seized his brothers' pregnant concubines and kept the children if they bore males, or his having had his concubines have sexual relations with others.
Liu Zhun himself was made the governor of the important capital region, Yang Province (揚州, modern Zhejiang and southern Jiangsu), but actual governance was carried out by his staff members.
By 477, Emperor Houfei had shown himself to be a cruel and violent ruler, often roving outside the palace with his guards and killing any person or animal that they encountered.
Xiao, in fear of being killed by Emperor Houfei, engaged his associates to have him assassinated, and then used his personal control of the army to effectively force other high-level officials Yuan Can and Liu Bing to grant him near-imperial powers.
Upon hearing of Emperor Houfei's death, the general Shen Youzhi accused Xiao Daocheng of wanting to usurp the throne, and he started a rebellion from his Jing Province (荊州, modern central and western Hubei), although he then ill-advisedly became bogged down in his progress in sieging Yingcheng (郢城, in modern Wuhan, Hubei).
Xiao accepted the throne, ending Liu Song and starting Southern Qi (as its Emperor Gao).
Xiao Daocheng created Liu Zhun the Prince of Ruyin (汝阴王) and built him a mansion in the vicinity of the capital Jiankang, but put him under heavy guard.