In 1493, Henry VII was betrayed by his step-uncle, William Stanley.
William Stanely, along with his brother, (Henry's step-father) Thomas Stanley, were instrumental in the Lancastrian victory at the Battle of Bosworth. Their extra men created the tipping point which led to Richard III's defeat.
After Bosworth, William Stanley was well rewarded. He is made Sir William Stanley, the King's Chamberlain, and at times described as 'the richest commoner in the land'.
He remained loyal to Henry during the Lambeth Simnel conspiracy, however, he begins to grumble that his relationship with the king is unbalanced and he is giving more than he is receiving in return.
With Perkin Warbeck gathering support in Europe for his claim to the throne, Stanley begins discussions with Robert Clifford regarding supporting the cause himself. In the March of 1493, Clifford is encouraged to travel to Europe and arrange support on Stanley's behalf, which he does in June of that year.
Henry VII is oblivious to this betrayal until 1495, when it may even have been Clifford who informed him.
Stanley is put on trial for treason, which is presided over by his own brother, Thomas Stanley. He is found guilty and should have faced the penalty of being hung, drawn, and quartered but this is reduced to beheading by Henry VII.
This very personal betrayal is felt deeply by Henry, and it's because of this that he develops the concept of a privy chamber: a smaller, more private area of the court which is harder to access by those seeking an audience with the king, with only the most trusted allowed, thus increasing privacy. The privy chamber is a function which continued to be used by future monarchs.
What was a personal injury for Henry, drastically changed the physical make-up of the court space.