Cryptic crossword clue
Not initially taken by Gay Rabbit?  Gone one better

The most common and most likely answer to this crossword clue is the 7 letter word OUTDONE

I've seen this crossword clue in Independent
O
U
T
D
O
N
E

Buddy explains!

The straight part
We know that "Gone one better" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case gone one better = outdone.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does OUTDONE mean?

OUTDONE verb
  1. To excel; go beyond in performance; surpass.

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