- OM plunged 90%, wiping out $68M and leading liquidation charts.
- Massive deposit and insider control rumors triggered panic and sell-off.
- Traders blamed manipulation; Mantra denied wrongdoing amid rising scam accusations.
Mantra’s OM recently soared near $6.30 but the price crumbled to $0.50 hours later. That kind of drop doesn’t happen quietly. In less than 24 hours, more than $68 million vanished. Traders got blindsided. Screens flashed red. Panic spread like wildfire. Some called it a technical meltdown. Others called it something far worse. Either way, confidence got crushed, and OM holders were left in shock. This wasn’t just another crypto dip — this felt like a disaster.
The Spark That Lit the Fuse
Leverage traders played with fire. OM had been pumping, and many thought the rally would keep going. Leverage stacked up across the board. But when the price started dipping, forced liquidations began. Within just half a day, more than $68 million in long positions got wiped out. Ten of those trades were over a million each — completely obliterated. In just one hour, OM topped the liquidation charts. More than $1.11 million in longs got closed by force. Not even Bitcoin or Ethereum came close.
The numbers were staggering. The chain reaction turned brutal. Margin calls slammed in, support levels broke, and OM’s price collapsed like a house of cards. The spark? A large deposit — around 3.9 million OM — landed on OKX. That move raised eyebrows. Many believe the wallet belonged to the team. Rumors took off. Fear followed. Talk of a 90% supply control by insiders resurfaced. Old complaints about shady OTC deals, delayed airdrops, and past manipulation poured fuel on the fire.
Accusations Explode While Trust Falls Apart
After the crash, Mantra co-founder JP Mullin tried to calm things down. He blamed centralized exchanges for “reckless forced closures.” According to Mullin, tokens remain locked in vesting contracts. He denied any insider dumping. But the market didn’t buy the story. Social media lit up. Accusations flew. One user called OM “one of the biggest scams” in crypto.
Another labeled the crash “Terra Luna 2.0.” Screenshots showed that the Mantra Telegram channel vanished — a move that raised even more suspicion. Some demanded legal action, claiming massive insider dumping had just taken place. Market analyst Miles Deutscher weighed in. OM’s chart didn’t make sense for a while, he noted. Prices had become disconnected from fundamentals. Valuations looked inflated.
Liquidity had dried up. Without enough buyers, even tokens with large market caps can fall apart. What happened to OM doesn’t just hurt wallets — it rattles trust. Whether this was an honest liquidity event or a coordinated rug pull remains unclear. But the damage speaks for itself. OM’s collapse stands as yet another brutal lesson in crypto’s high-risk game. One moment, traders chase gains. The next, they’re holding the wreckage.
