It was a turbulent weekend for holders of OM, the native token of MANTRA, as the price collapsed by nearly 90% in less than 2 hours. Once praised as one of the strongest real world asset projects in crypto, MANTRA is now facing scrutiny after billions in market value were wiped out.
While the team insists that the crash was not caused by any internal action, confusion and concern still cloud the situation.
What Caused the Sudden Price Collapse
On the afternoon of Sunday, 13 April 2025, OM experienced one of the most dramatic price crashes in recent crypto history. The token dropped from $5.26 to just $0.42 in 90 minutes.
According to data from Coinglass, this drop triggered over $68 million in liquidations. By the end of the day, OM had lost around $4.6 billion in market capitalisation.
The initial reaction from the community was confusion. Many speculated whether the team had sold tokens or whether there had been a security issue. However, further analysis suggested a different cause.
According to onchain data from Lookonchain, 17 wallets had transferred around 43.6 million OM tokens to exchanges. This total, worth $227 million at the time, represented approximately 4.5% of the circulating supply.
Two of these wallets were tagged as belonging to Laser Digital, a known strategic investor in MANTRA.
This significant transfer of OM onto exchanges raised concerns. The community feared that a coordinated sell off might have occurred. Lookonchain’s findings quickly spread on X, formerly Twitter, adding to the tension. However, this was only part of the story.
The most detailed explanation came from MANTRA CEO John Patrick Mullin. In a personal message on X, he said the crash was caused by a large forced liquidation on a centralised exchange.
This liquidation, according to Mullin, was carried out without adequate warning and occurred during a period of low market liquidity.
Specifically, the incident happened on a Sunday evening UTC, which corresponds to the early hours of Monday morning in Asia, when trading volumes are typically thinner.
Further statements from MANTRA’s official X account echoed this explanation. The team stressed that the issue was not caused by any action from the MANTRA team, its investors, or any unlocks of tokens. All vesting schedules, they said, remain unchanged, and tokens continue to be locked as planned.
The timing and scale of the forced closures suggest that exchanges acted with discretion, possibly without considering the full impact of their actions on OM’s market. This raises concerns not just about Mantra but about how centralised platforms handle risk during low-liquidity periods.
Mantra’s Response and Community Reactions
In the hours following the crash, the MANTRA team moved quickly to respond. They issued several statements across official channels to calm fears and clarify what had occurred.
The most important message from both the project’s X account and CEO John Patrick Mullin was that the team had no role in the crash. They explained that none of the core contributors, advisors, or associated entities had sold tokens or broken vesting rules.
Mullin stated that the forced liquidation came from a large OM holder using a centralised exchange.
Because the liquidation happened so rapidly and during off-peak hours, it appears that market depth could not absorb the sudden selling pressure. The result was a cascade of liquidations that drove the price down.
The CEO did not name the exchange involved, but his comments pointed to serious concerns about how some platforms manage leveraged positions in illiquid markets.
He suggested that such actions, especially when taken without oversight, can have devastating consequences for token holders and the broader project.
In an extended public letter, Mullin thanked the MANTRA community for its support and said that the team remained committed to its long-term goals.
He pointed to recent progress such as the protocol’s licensing approval from Dubai’s Virtual Asset Regulatory Authority and upcoming integrations within the ecosystem. The message was clear. This event, while severe, would not stop the team from building.
The team also reminded users to stay alert for scams, noting that fake announcements often emerge during moments of crisis. They confirmed that only communications from Mullin’s account or the official MANTRA account should be trusted.
Despite the reassurances, the community response remained mixed. Some investors praised the team for being transparent and proactive. Others questioned the level of exposure that OM had to centralised exchanges, particularly for large token holders.
The incident highlighted an ongoing concern in the crypto sector. When tokens are heavily used as collateral or held on centralised platforms, external actions can quickly undo months of growth.
At the time of writing, OM has recovered slightly to around $0.75, but this still represents an 88% decline from its previous value.
Just 2 months ago, OM reached an all time high of $9.04 and was up over 60% for the year. The sudden reversal has left many retail investors stunned and uncertain about what comes next.
Conclusion
The collapse of OM’s price has raised urgent questions about the risks of forced liquidations and the role of centralised exchanges in token markets. While the MANTRA team maintains that the crash was not their fault, the damage to investor confidence is significant.
The project’s future may still be strong, but how it handles this recovery phase will be critical. As the team prepares for a community call and works to rebuild trust, the broader crypto community is watching closely.