OM token crashed over 90% in a matter of hours, falling from $6 to under $0.40.
The Mantra team attributes the crash to forced liquidations by exchanges, not project fundamentals.
OM faced mass liquidations, wiping out hundreds of millions in value.
A Sudden Crash With No Warning
Mantra is a Layer 1 blockchain for tokenizing assets like real estate, hospitality, and data centers on-chain through compliant tokenization.
Mantra’s OM token saw one of the steepest single-day declines in crypto this year, plunging over 90% from nearly $6 to just under $0.40 within hours on Sunday. The crash occurred during low-liquidity trading hours, a time when price swings are more likely due to thinner market depth.
While no immediate catalyst was apparent, the fallout was swift, triggering over $50 million in long-side liquidations on OM-tracked futures. Open interest fell sharply, dropping from $345 million to $130 million, indicating a rapid unwind of leveraged bets.
Mantra Responds: ‘Not a Fundamental Issue’
The Mantra team stated on X that the crash was caused by reckless liquidations, not flaws within the project. Co-founder John Patrick Mullin added that centralized exchanges closed positions without warning, raising concerns about transparency and risk management.
“The depth and timing of the crash suggest a very sudden closure of accounts by exchanges,” Mullin posted. He also hinted at possible “intentional market positioning.”
We believe it was one in particular, but figuring out the details. Will share what we can in due course.
MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025
Industry Voices Weigh In
The incident caught the attention of major industry players. OKX founder Star Xu called the situation “a big scandal” and committed to making on-chain and collateral reports public to help clarify what happened. Data flagged over $220 million in OM deposits to exchanges prior to the crash adding to market suspicion.
While some traders defended Mantra, others questioned the broader implications for real-world asset (RWA) tokens, a segment of the market that had been gaining strong momentum in recent quarters.
It’s a big scandal to the whole crypto industry. All of the onchain unlock and deposit data is public, all major exchanges’ collateral and liquidation data can be investigated. OKX will make all of the reports ready! https://t.co/YYnb1ByUGL
Earlier this year, it announced a $1 billion tokenization partnership with UAE-based DAMAC Group and burned 21 million OM tokens in April moves previously seen as bullish by investors.
The Road Ahead
With investigations ongoing, traders are awaiting updates from both the Mantra team and the exchanges involved. The exact cause of OM’s crash remains unclear, but more communication is expected soon.
Adding to the anticipation, Cointelegraph’s Gareth Jenkinson will interview Mantra CEO JP Mullin on Chain Reaction today at 2 p.m. CET, a key moment that may shed light on one of 2025’s most dramatic token events.
