The post Mantra’s OM Token Crashes 90% After Forced Liquidation Turmoil appeared on BitcoinEthereumNews.com.

Key Takeaways: Forced liquidations wiped out more than $5 billion in OM token market value in a matter of hours. Accusations of insider selling have circulated, but Mantra insists they were not involved in any such activity. As a result, investors are demanding greater transparency and improved risk management from centralized exchanges. OM Token Crashes: Where Does The Fall End? OM token crashed from $6 to $0.37 on April 14, wiping out $5.5 billion in market value in under 24 hours — one of the most dramatic collapses in crypto history. At the time of writing, OM is trading at $1.03 but is still down more than 87% from its all-time high of $8.99. The event shocked investors and drew parallels to infamous blowups such as the 2022 collapse of Terra Luna. As social media platforms flooded with accusations and confusion, the lack of clear answers from the Mantra team only fueled further speculation. Insider Dump or Liquidation Cascade? The magnitude and velocity of the crash raised immediate suspicion of an insider sell-off. Some suspect insider dumping, citing $227M worth of OM moved to exchanges pre-crash, including wallets tied to Laser Digital. Mantra denied involvement, blaming cascading liquidations — $65M in OM contracts were wiped, $33M on Binance alone. A large OM transfer to OKX before the crash resulted in massive losses, likely magnified by leverage. Blame the Market Maker Mistakes, Not the Exchange Aside from the cascade of liquidation, reports emerged of errors in algorithmic trading. A market maker misread OM’s collapse, pushing BTCDOM up 20% under the false assumption of a broader structural shift. The incident showed how small tokens like OM can disrupt broader indexes via automated trading systems. The volatility was a result of cross-platform liquidations, and Binance outlined risk control measures it has in place for OM, including building…

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Filed under: News - @ April 15, 2025 5:27 pm