Mantra Token Freefall: Exchange Liquidations Spark Panic and Denials
So here’s what’s been unfolding in the crypto space — and if you’ve been watching the markets closely, you probably didn’t miss this one. The Mantra token, OM, just nosedived by a jaw-dropping 90% , and it happened almost overnight. It went from trading around $6.30 all the way down to $0.70 — a loss that wiped out billions of dollars in value. The market cap shrunk dramatically to just $683 million. And now, a lot of fingers are pointing — but who’s really to blame?
The team behind Mantra is not staying silent. They’re placing the blame squarely on centralized exchanges, accusing them of executing reckless liquidations that caused a domino effect of forced closures. John Patrick Mullin, one of Mantra’s co-founders, came forward quickly, explaining that this wasn’t the result of any internal mismanagement or malicious intent — and certainly not a "rug pull."
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What he’s suggesting is pretty serious: these forced liquidations were triggered suddenly, without enough notice, and at a time when liquidity was at its lowest — early Sunday UTC, which is late night in the U.S. and early morning in Asia. That kind of timing, according to Mullin, either signals carelessness or something more deliberate — potentially even market manipulation.
OKX, one of the exchanges involved, issued its own statement. They confirmed the timeline of the price collapse and highlighted some concerning on-chain activity — notably large deposits and withdrawals from accounts with similar patterns since March. They also mentioned structural changes in the OM token's economic model dating back to October 2024. In response, they’ve updated their risk control parameters and even added warnings to the OM token’s trading page.
To make matters worse, data from Coinglass shows that over $74 million in positions were liquidated during the crash. That’s a lot of pain for traders who likely didn’t see this coming. Some individual liquidations even topped $1 million.
Meanwhile, the crypto community, always quick to react, started speculating whether this was a classic rug pull. People compared it to LUNA or even the FTX meltdown — but the Mantra team was just as quick to push back. They provided wallet verification to show that their team tokens remain locked under the vesting schedule. According to them, nothing shady happened behind the scenes — the tokens weren’t dumped, and the DAO even burned 21 million OM tokens earlier in the month, which they say has no relation to this incident.
This whole situation is a massive reminder of how volatile and fragile the crypto markets still are. Whether it was a failure in risk controls, systemic issues, or something more strategic by exchanges, it’s clear that transparency and stronger protections are needed — because when things go south this fast, it shakes confidence across the board.
We’ll have to see how Mantra recovers from this — if it does at all — but for now, the crypto world is watching, and the debate around centralized exchange influence just got a lot louder.
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