TL;DR
- Massive Price Crash: Mantra (OM) plummeted over 90% overnight, falling from roughly $6.30 to about $0.70, erasing billions in market value and triggering tens of millions in forced liquidations.
- Triggering Factors: The implosion began during a low-liquidity period, with large investors shifting significant amounts of tokens to major trading platforms, sparking panic selling.
- Market Fallout: Aggressive liquidation practices on centralized exchanges and unusual on-chain activity fueled the crash, raising concerns over market safeguards as investors face steep losses.
Mantra (OM) experienced a catastrophic collapse overnight. What began as an ordinary trading day swiftly became a nightmare for investors as the token’s price plunged by more than 90%—dramatically dropping from roughly $6.30 to around $0.70 within mere hours.
This devastating slide not only wiped out billions in market capitalization but also triggered forced liquidations amounting to tens of millions of dollars, leaving investors reeling and the market on edge. At the moment, the OM token is trading at $0.7448, dropping 88%.
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
The Crash That Shook the Market
The turmoil began during low-liquidity hours on a seemingly quiet Sunday evening. Multiple exchanges reported an abnormal surge in trading volume accompanied by rapid price declines across the board.
Sources within the industry have disclosed that shortly before the significant decline, a small group of large-scale investors discreetly moved substantial amounts of OM tokens to prominent trading platforms. This calculated action has raised concerns that a planned sell-off could have been orchestrated, triggering a wave of panic selling that resulted in the sharp downturn.
Crucially, the Mantra team has been quick to clarify that they were not responsible for the sell-off—blaming instead the aggressive forced liquidations executed by centralized exchanges during a period of fragile market conditions.
What Caused the Implosion?
On the one hand, according to statements from Mantra’s co-founder, the disastrous collapse stemmed from reckless liquidation practices on large exchanges. On-chain data supports the observation that unusual deposit and withdrawal patterns were present in the days leading up to the crash, suggesting that significant token transfers helped amplify the downward pressure.
Analysts point out that such rapid movements, especially by whale accounts, not only erode confidence but also create an environment where even minor sell orders can trigger disproportionate declines in asset values.
On the other hand, Glassnode shared a thread on X providing a detailed on-chain breakdown of the dramatic collapse of Mantra’s token, revealing that its price plummeted below $1 in mere hours—not due to any major inflow of funds but rather as a consequence of reactionary trading activity.
The data highlights a significant surge in trading volume, with roughly 38 million OM tokens traded at around $0.71, suggestive of widespread panic selling and opportunistic liquidations by retail investors.
