Some old and new rumour about badges, which might or might not (have) exist(ed) at some point in time.
Remember the badge glitch with (golden) HC, background showing ? Original badge in directory has this yellow background. Seems Sulake had a little problem with their own way to show transparency, in-game transparency is not achieved the regular .gif file way (mask on specific color) - instead the color white is transparent (not only on badges, for everything). There have been several occasions, not all fixed, where designers used white inside badge itself, and badges showed unintended transparency. One of the christmas badges suffered a double bug, it was (not anymore) an animation, which doesn’t work inside the hotel (but does on homes). Worst ever seen was the Italian RUG badge, at first uploaded as a renamed .jpg, artifacts clearly visible. Some examples of how these look inside the hotel:
This is not counting quite a couple (foremost Spanish) badges with poor anti-aliasing, or rather, anti-aliasing against a white background. Which is bad inside hotel, less bad on Habbo homes, but should be considered either way.