OM Token Experiences 90% Collapse in Unexpected Sell-Off, Mantra Team Blames ‘Forced Liquidations’

Mantra’s OM token plummeted by 90% in a sudden and unexplained sell-off, stirring up conspiracy theories and prompting accusations of market manipulation across the crypto community. The dramatic decline occurred within hours, sparking memories of the infamous collapse of Terra’s LUNA token.

OM’s price dropped from over $6 to around 40 cents late Sunday through early Monday, during a period of low liquidity in the market. This volatility is often exacerbated by large orders in low-volume periods, resulting in significant price swings.

Following the crash, the Mantra team reassured investors that the project itself was not at fault. “We want to clarify that today’s activity was due to reckless forced liquidations, not a failure of the project,” the team stated on X. “This was not caused by any actions from our side. We are investigating what happened and will provide more information as soon as we have it.”

Mantra focuses on tokenizing real-world assets (RWAs) such as real estate and commodities, allowing digital investments in physical assets through blockchain technology. OM, the platform’s native token, facilitates both transactions and governance on the platform.

In January 2025, Mantra formed a strategic partnership with DAMAC Group, a prominent UAE-based conglomerate, to tokenize up to $1 billion in assets, including real estate and data centers. The OM token was one of the biggest gainers of 2024, surging over 400%, despite limited media attention in the crypto community.

However, John Patrick Mullin, Mantra’s co-founder, suggested that the massive price decline was likely triggered by forced liquidations by centralized exchanges, which had a cascading effect on the market.

“We have determined that the sharp drop in OM’s price was caused by reckless forced liquidations initiated by centralized exchanges on OM positions,” Mullin stated in a post on X. “The timing and scale of the crash suggest that positions were closed suddenly, without proper notice or warning.”

Mullin also hinted at potential market manipulation by these exchanges, further fueling the controversy surrounding the incident.

OM’s futures market saw more than $50 million in liquidations on the long side, setting a new record for the token. The open interest, which reflects the number of outstanding futures contracts, fell sharply from $345 million to just over $130 million, signaling a swift exit from long positions.

Despite Mullin’s explanation, several figures in the crypto community have expressed skepticism, with many criticizing his account of the events. Dismissing his narrative, some users questioned whether the sell-off was entirely due to liquidations or if there were other factors at play.

Star Xu, founder of OKX, responded by pointing out that over $220 million in deposits were moved to exchanges before the crash.

“This is a major scandal for the crypto space,” Xu commented. “All on-chain data, such as unlocks and deposits, is publicly accessible, and the collateral and liquidation data from exchanges can be analyzed. OKX will make the full reports available for public review.”