Sorry to imply that Skull and Bones is a fraternity, I just mentioned them because they are probably the most "famous" for bundling.
Bundling is rarely used for tapping, it's almost always used in a sense of horseplay and pranks. At Rensselaer, in the 60's, one house did a lot of it (possibly Zeta Psi or Alpha Sigma Phi?) - the pledges were "allowed" to bundle the rush chairman if he was alone - which he chose not to be, as much as possible. He would hang with a brother (who could not be bundled) or a professor, but there was the occasional lapse - when he got bundled.
http://dabacon.org/pontiff/?p=1546 is a story of Contemporary Caltech. Before duct tape (read down), seniors could be chained to trees, or bundled.
Yeah, I agree about bundling being a good way to get suspended. I just wondered if it was still done.