Mantra’s OM Crashes 90% in Weird Selloff as Workforce Alleges ‘Pressured Liquidations’

Crypto merchants have been reminded of Terra’s LUNA early Monday as fashionable real-world asset upstart Mantra’s OM token dropped 90% inside hours on no sudden catalyst — with conspiracy theories and allegations working abound amongst crypto circles.

OM plunged from over $6 to only over 40 cents late Sunday to early Monday in usually low liquidity hours for the crypto market — the place outsized volumes can set off huge worth actions in both path.

“We need to guarantee you that MANTRA is essentially robust,” the staff mentioned in an X submit following the worth drop. “At present’s exercise was triggered by reckless liquidations, not something to do with the undertaking. One factor we need to be clear on: this was not our staff. We’re wanting into it and can share extra particulars about what occurred as quickly as we are able to.”

Mantra lets customers tokenize real-world property (RWAs) like actual property and commodities, enabling compliant digital investments in tangible property. Its OM token facilitates transactions and governance.

In January 2025, Mantra partnered with DAMAC Group, a UAE-based conglomerate, to tokenize $1 billion in property, together with actual property, hospitality, and knowledge facilities.

OM was among the many greatest market gainers in 2024, rising greater than 400% on comparatively low public dialog on crypto-related social media – which intrigued merchants and traders alike on the power of the transfer.

In the meantime, co-founder John Patrick Mullin alleged the motion was possible as a consequence of exchanges closing OM positions, which impacted all market publicity.

“We’ve decided that the OM market actions have been triggered by reckless pressured closures initiated by centralized exchanges on OM account holders,” Mullin mentioned in an X submit. “The timing and depth of the crash recommend {that a} very sudden closure of account positions was initiated with out enough warning or discover.”

He additional alleged “intentional market positioning taken by centralized exchanges.”

OM-tracked futures recorded over $50 million in liquidations on the lengthy aspect, a file determine for the tokens. Open curiosity slumped from $345 million to only over $130 million, indicating a fast exit for unsettled futures bets.

Some outstanding crypto voices aren’t shopping for that narrative, nevertheless, with scores of dismissive replies beneath Mullin’s posts.

OKX founder Star Xu added in a response to a separate submit that flagged over $220 million in token deposits to exchanges earlier than the worth crash.

“It’s an enormous scandal to the entire crypto trade. The entire onchain unlock and deposit knowledge is public, all main exchanges’ collateral and liquidation knowledge will be investigated. OKX will make all the reviews prepared,” Xu mentioned.