Cabaret singer loses face covering AC/DC in rave venue (5)
I believe the answer is:
ibiza
'rave venue' is the definition.
The definition suggests a singular noun which matches the answer.
'cabaret singer loses face covering acdc' is the wordplay.
'cabaret singer' becomes 'Liza' (Liza Minnelli).
'loses face' means to remove the first letter (the 'face' of the word is removed).
'covering' is an insertion indicator.
'acdc' becomes 'bi' (AC/DC can informally mean bisexual).
'liza' with its first letter removed is 'iza'.
'iza' enclosing 'bi' is 'IBIZA'.
'in' acts as a link.
Can you help me to learn more?
(Other definitions for ibiza that I've seen before include "part of the Balearics" , "Westermost of Balearic Islands, popular for holidays" , "One of the Balearic Islands" , "A Balearic 5 across" , "Mediterranean location" .)