Mantra's OM Token Plummets 90% Due to Forced Liquidations

Mantra's CEO, JP Mullin, has attributed the 90% crash of the OM token to forced liquidations by centralized exchanges during low-liquidity hours. The OM token, which is native to the Mantra blockchain ecosystem, experienced a dramatic drop from a high of $6.30 to under $0.50 within a few hours over the weekend. This sudden plunge left the Mantra community in shock, prompting an urgent response from the project's leadership.

Mullin clarified that the incident was not due to any internal issues, token unlocks, or insider sales. Instead, he explained that the crash was a result of low weekend liquidity and aggressive liquidation mechanisms. The sudden drop occurred during the evening hours on Sunday (UTC), a period typically marked by low trading activity across global markets. Mullin explained that a large leveraged position was forcibly liquidated, which in turn created a cascade of automatic sell orders on various exchanges.

“This wasn’t caused by us or by our investors,” Mullin stated in a public announcement. “All OM tokens are still locked up per our vesting schedule. No one on the team dumped anything. This was an unfortunate situation where someone got liquidated hard, and it snowballed fast in thin weekend markets.” He added that the lack of liquidity on centralized exchanges amplified the damage, causing OM’s value to plummet far beyond what would have occurred under normal conditions.

In the aftermath of the crash, panic spread throughout the Mantra community, with many investors expressing concerns about the project’s future. Mullin took to social media to reassure the community, referring to Mantra supporters as “OMies” and “Sherpas”—a nod to the project’s ecosystem culture. “First off, the team and I greatly appreciate the support we’ve received over the past several hours. It’s a testament to the strength of this community,” Mullin tweeted. “While this incident was outside of our control, we are focused on building long-term value.”

Mullin emphasized that Mantra’s roadmap remains unchanged and that the fundamentals of the project are stronger than ever. He also confirmed that the team is working closely with exchanges to understand what happened and how similar events can be prevented in the future. Before the crash, OM had seen impressive growth, reaching an all-time high of $6.13. The surge was driven by Mantra’s expansion in the real-world asset (RWA) tokenization space, including a notable partnership with MAG Group Holding to tokenize over $500 million in real estate assets in the UAE. This positioned Mantra as one of the top RWA-focused crypto projects in 2025. But the weekend crash cast a shadow over its momentum—at least temporarily.

Still, industry analysts believe that as long as Mantra continues to deliver on its roadmap and maintain transparency, the project can recover from this setback. The OM token’s collapse is a painful reminder of how quickly things can unravel in crypto markets, especially during times of low liquidity. However, the Mantra team’s swift response and transparent communication could help restore investor confidence. As Mullin noted, “This isn’t the end. It’s just a bump on a much bigger journey.”