Should I disclose about my signed offer before interview?

Hey guys I did a summer intern at BB, and accepted the full time return offer in the S&T division. However, I just received an email from one of the best hedge funds in the street regarding the interview of a trading/investing position. (DE Shaw/ Millenium) In the email, they are asking me to confirm whether I have any exploding offer.

I really wish to work at the hedge fund, but would worry that saying I have accepted another offer jeopardize my application process.However, if I do not disclose about having accepted offer, the hedge fund might find out about it during the background check by calling up my previous employer.

What actions should I take in this case? Can you give me some advices? Thanks !

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