diff --git a/solidity/contracts/modules/dispute/BondEscalationModule.sol b/solidity/contracts/modules/dispute/BondEscalationModule.sol
index bd0d01cf..bf398eab 100644
--- a/solidity/contracts/modules/dispute/BondEscalationModule.sol
+++ b/solidity/contracts/modules/dispute/BondEscalationModule.sol
@@ -27,30 +27,6 @@ contract BondEscalationModule is Module, IBondEscalationModule {
     return 'BondEscalationModule';
   }
 
-  // TODO: Remove and instead use onDisputeStatusChanged
-  /// @inheritdoc IBondEscalationModule
-  // function disputeEscalated(bytes32 _disputeId, IOracle.Dispute calldata _dispute) external onlyOracle {
-  //   bytes32 _requestId = _dispute.requestId;
-  //   BondEscalation storage _escalation = _escalations[_dispute.requestId];
-
-  //   if (_requestId == bytes32(0)) revert BondEscalationModule_DisputeDoesNotExist();
-
-  //   if (_disputeId == _escalation.disputeId) {
-  //     RequestParameters memory _params = decodeRequestData(_request.disputeModuleData);
-  //     if (block.timestamp <= _params.bondEscalationDeadline) revert BondEscalationModule_BondEscalationNotOver();
-
-  //     if (
-  //       _escalation.status != BondEscalationStatus.Active
-  //         || _escalation.amountOfPledgesForDispute != _escalation.amountOfPledgesAgainstDispute
-  //     ) {
-  //       revert BondEscalationModule_NotEscalatable();
-  //     }
-
-  //     _escalation.status = BondEscalationStatus.Escalated;
-  //     emit BondEscalationStatusUpdated(_requestId, _disputeId, BondEscalationStatus.Escalated);
-  //   }
-  // }
-
   /// @inheritdoc IBondEscalationModule
   function disputeResponse(
     IOracle.Request calldata _request,
@@ -96,11 +72,30 @@ contract BondEscalationModule is Module, IBondEscalationModule {
   function onDisputeStatusChange(
     bytes32 _disputeId,
     IOracle.Request calldata _request,
-    IOracle.Response calldata _response,
+    IOracle.Response calldata,
     IOracle.Dispute calldata _dispute
   ) external onlyOracle {
     RequestParameters memory _params = decodeRequestData(_request.disputeModuleData);
 
+    BondEscalation storage _escalation = _escalations[_dispute.requestId];
+
+    if (ORACLE.disputeStatus(_disputeId) == IOracle.DisputeStatus.Escalated) {
+      if (_disputeId == _escalation.disputeId) {
+        if (block.timestamp <= _params.bondEscalationDeadline) revert BondEscalationModule_BondEscalationNotOver();
+
+        if (
+          _escalation.status != BondEscalationStatus.Active
+            || _escalation.amountOfPledgesForDispute != _escalation.amountOfPledgesAgainstDispute
+        ) {
+          revert BondEscalationModule_NotEscalatable();
+        }
+
+        _escalation.status = BondEscalationStatus.Escalated;
+        emit BondEscalationStatusUpdated(_dispute.requestId, _disputeId, BondEscalationStatus.Escalated);
+        return;
+      }
+    }
+
     bool _won = ORACLE.disputeStatus(_disputeId) == IOracle.DisputeStatus.Won;
 
     _params.accountingExtension.pay({
@@ -120,8 +115,6 @@ contract BondEscalationModule is Module, IBondEscalationModule {
       });
     }
 
-    BondEscalation storage _escalation = _escalations[_dispute.requestId];
-
     if (_disputeId == _escalation.disputeId) {
       // The dispute has been escalated to the Resolution module
       if (_escalation.status == BondEscalationStatus.Escalated) {
diff --git a/solidity/test/unit/modules/dispute/BondEscalationModule.t.sol b/solidity/test/unit/modules/dispute/BondEscalationModule.t.sol
index 7575713c..7d404114 100644
--- a/solidity/test/unit/modules/dispute/BondEscalationModule.t.sol
+++ b/solidity/test/unit/modules/dispute/BondEscalationModule.t.sol
@@ -202,7 +202,7 @@ contract BondEscalationModule_Unit_EscalateDispute is BaseTest {
     bytes32 _disputeId = _getId(mockDispute);
 
     _mockAndExpect(
-      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Active)
+      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Escalated)
     );
 
     // Setting this dispute as the one going through the bond escalation process, as the user can only
@@ -249,7 +249,7 @@ contract BondEscalationModule_Unit_EscalateDispute is BaseTest {
     );
 
     _mockAndExpect(
-      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Active)
+      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Escalated)
     );
 
     // Set the dispute to be the one that went through the bond escalation process for the given requestId
@@ -270,28 +270,23 @@ contract BondEscalationModule_Unit_EscalateDispute is BaseTest {
    *             - The dispute has to have gone or be going through the bond escalation process
    *             - The pledges must not be tied
    */
-  function test_revertIfEscalatingDisputeIsNotTied(
-    bytes32 _disputeId,
-    bytes32 _requestId,
-    IOracle.Request calldata _request
-  ) public {
-    // Assume _requestId is not zero
-    vm.assume(_requestId > 0);
-
-    mockDispute.requestId = _requestId;
-
+  function test_revertIfEscalatingDisputeIsNotTied(IBondEscalationModule.RequestParameters memory _params) public {
     // Set a tying buffer to make the test more explicit
-    uint256 _tyingBuffer = 1000;
-
+    _params.tyingBuffer = 1000;
     // Set bond escalation deadline to be the current timestamp. We will warp this.
-    uint256 _bondEscalationDeadline = block.timestamp;
+    _params.bondEscalationDeadline = block.timestamp;
+    mockRequest.disputeModuleData = abi.encode(_params);
+
+    bytes32 _requestId = _getId(mockRequest);
+    mockDispute.requestId = _requestId;
+    bytes32 _disputeId = _getId(mockDispute);
 
     // Set the number of pledgers to be different
     uint256 _numForPledgers = 1;
     uint256 _numAgainstPledgers = 2;
 
     // Warp the current timestamp so we are past the tyingBuffer
-    vm.warp(_bondEscalationDeadline + _tyingBuffer + 1);
+    vm.warp(_params.bondEscalationDeadline + _params.tyingBuffer + 1);
 
     // Set the bond escalation status of the given requestId to Active
     bondEscalationModule.forTest_setBondEscalationStatus(_requestId, IBondEscalationModule.BondEscalationStatus.Active);
@@ -302,10 +297,14 @@ contract BondEscalationModule_Unit_EscalateDispute is BaseTest {
     // Set the number of pledgers for both sides
     _setBondEscalation(_requestId, _numForPledgers, _numAgainstPledgers);
 
+    _mockAndExpect(
+      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Escalated)
+    );
+
     // Check: does it revert if the dispute is not escalatable?
     vm.expectRevert(IBondEscalationModule.BondEscalationModule_NotEscalatable.selector);
     vm.prank(address(oracle));
-    bondEscalationModule.onDisputeStatusChange(_disputeId, _request, mockResponse, mockDispute);
+    bondEscalationModule.onDisputeStatusChange(_disputeId, mockRequest, mockResponse, mockDispute);
   }
 
   /**
@@ -358,34 +357,20 @@ contract BondEscalationModule_Unit_EscalateDispute is BaseTest {
     _setBondEscalation(_requestId, _numForPledgers, _numAgainstPledgers);
 
     // Check: is the event emitted?
-    // vm.expectEmit(true, true, true, true, address(bondEscalationModule));
-    // emit BondEscalationStatusUpdated(_requestId, _disputeId, IBondEscalationModule.BondEscalationStatus.Escalated);
+    vm.expectEmit(true, true, true, true, address(bondEscalationModule));
+    emit BondEscalationStatusUpdated(_requestId, _disputeId, IBondEscalationModule.BondEscalationStatus.Escalated);
 
     // Mock and expect IOracle.createdAt to be called
     _mockAndExpect(
-      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Active)
-    );
-
-    _mockAndExpect(
-      address(_params.accountingExtension),
-      abi.encodeCall(IAccountingExtension.pay, (_requestId, _disputer, _proposer, _params.bondToken, _params.bondSize)),
-      abi.encode()
-    );
-
-    _mockAndExpect(
-      address(_params.accountingExtension),
-      abi.encodeCall(
-        IBondEscalationAccounting.onSettleBondEscalation, (_requestId, _disputeId, false, _params.bondToken, 2, 2)
-      ),
-      abi.encode()
+      address(oracle), abi.encodeCall(IOracle.disputeStatus, (_disputeId)), abi.encode(IOracle.DisputeStatus.Escalated)
     );
 
     vm.prank(address(oracle));
     bondEscalationModule.onDisputeStatusChange(_disputeId, mockRequest, mockResponse, mockDispute);
 
-    // IBondEscalationModule.BondEscalation memory _escalation = bondEscalationModule.getEscalation(_requestId);
+    IBondEscalationModule.BondEscalation memory _escalation = bondEscalationModule.getEscalation(_requestId);
     // Check: is the bond escalation status properly updated?
-    // assertEq(uint256(_escalation.status), uint256(IBondEscalationModule.BondEscalationStatus.Escalated));
+    assertEq(uint256(_escalation.status), uint256(IBondEscalationModule.BondEscalationStatus.Escalated));
   }
 }