Mantra token crashes 90%

Mantra’s OM token suffered a massive 90% price crash within hours, sparking confusion and panic among traders. The project team claims the plunge wasn’t due to any flaws in the fundamentals but rather “reckless forced liquidations” by centralized exchanges during a period of low market liquidity.

OM dropped from over $6 to about $0.40 late Sunday into early Monday, coinciding with a quiet trading window where small actions can lead to big price swings. Co-founder John Patrick Mullin suggested that major centralized platforms abruptly closed OM positions, causing over $50 million in liquidations and a sharp drop in open interest from $345 million to around $130 million.

While the Mantra team reassured users of the project’s stability, others in the crypto space remain skeptical. OKX founder Star Xu noted that over $220 million in tokens had been moved to exchanges just before the crash, calling it a serious issue and promising a full investigation with public reports.