Thank you for writing.
The desired functionality cannot be achieved in bound mode because when you are moving the SubNode from one ParentNode to another the tree view is not making any actual changes to the data behind, thus the tree view does not have the proper index for the dragged node. RadTreeView is visual representation of the data and for this reason it does not know where to insert or how to arrange the nodes.
Do not hesitate to contact us if you have other questions.
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