To reproduce:
- Add a RadGridView and a button to a blank form.
- Subscribe to CellValidating event from the grid and set the cancel property of the CellValidatingEventArgs to true upon some condition.
- Add click event handler for the button and print a message in it.
- Start the application and enter some invalid data in the grid cell, then click the button.
- The code from the button's event handler is executed.

Workaround use a flag to determine when to execute the corresponding button code:
bool validating = false;

void radGridView1_CellValidating(object sender, Telerik.WinControls.UI.CellValidatingEventArgs e)
{
    if (e.Value.ToString().Length < 5)
    {
        e.Cancel = true;
        validating = true;
        e.Row.ErrorText = "Validation error!";
    }
    else
    {
        validating = false;
    }
}

private void radButton1_Click(object sender, EventArgs e)
{
    if (!validating)
    {
        Debug.WriteLine("Executed");
    }
}