Timeline | OM plummets over 80% - Whose 'Fault' Is It: Team, Liquidity Provider, or Investor?

In the early hours, the RWA sector project MANTRA (OM) experienced a rapid 90% drop from $6 to $0.5, causing its market cap to plummet by over $5.5 billion. Three hours later, the MANTRA team (OM token issuer) released a statement attributing the crash to an irrational liquidation event unrelated to the project itself, stating that it was not initiated by the team. Subsequently, OM surged from around $0.5 to $1.2, experiencing a short-lived price spike. According to Coinglass data, within just four hours, the OM contract saw liquidations totaling $58 million.

Prior to this crash, OM had gone through several violent surges starting from November last year, earning it the community nickname of "Stronghold Demon Coin." Related article: "After Evaporating $5.5 Billion in 15 Minutes and Surging 4x, Why did the 'Demon Coin' OM Suddenly Plunge?". So, what is the truth behind this crash? Was it really caused by off-exchange trading liquidation? BlockBeats will continue to monitor and provide real-time updates. The following is a summary of the event timeline:

April 19

Mantra Launches its First Real-Time Dashboard Displaying OM Token Supply Details

At 9:04 PM, Mantra announced the launch of its first real-time dashboard initial version. The dashboard aims to provide a clear view and real-time data, showcasing details on the OM token supply, operational wallets, and other key on-chain asset holdings. Dashboard V1 includes: a detailed breakdown of OM on the EVM chain and mainnet; links to various relevant wallets.

Mantra Co-founder: 90% of OM Token's Circulating Supply has Never Been Team-Controlled

At 9:40 PM, Mantra Co-founder JP Mullin posted stating, "90% of the OM circulating supply has never been under the team's control, as over 91% of the circulating supply has been minted on Ethereum and has been circulating for almost 5 years."

April 18

Analysis: Mantra and Liquidity Providers Allegedly Inflate OM Token Liquidity by Exploiting Data Aggregator Oracle Validation Flaw

On April 18, according to Cryptoslate, in a recent episode of "The Chopping Block" podcast discussion, it was claimed that Mantra and its associated liquidity providers exploited a self-reporting system vulnerability in the data aggregator oracle, manipulating OM token liquidity metrics. They distorted circulating supply and trading volume to create a false impression of market activity. The Mantra team collaborated with liquidity providers to engage in token wash trading between controlled addresses and exchanges, inflating data with little to no natural volume participation.

On-chain observers have stated that the true liquid supply of the OM token is less than 1%, yet it appears to be a top 25 asset by market cap. This strategy exploits a verification process loophole between CoinGecko and CoinMarketCap, both of which rely on self-reported data from project teams rather than cross-referencing with exchange listings and on-chain analytics. Malicious actors can allocate tokens to liquidity providers, orchestrate seemingly natural trading activity to evade scrutiny, even without retail participation. When a large OM holder sold off, an artificial liquidity collapse occurred, causing a 90% price drop in 90 minutes. This event led to a multi-billion-dollar market cap wipeout, exposing the asset's vulnerability in terms of trading depth.

April 16

MANTRA Issues Statement on OM Flash Crash Event: Team Did Not Sell, Plans Buyback and Burn Mechanism Activation

On the afternoon of April 16, MANTRA released a statement regarding the OM flash crash event, stating that the MANTRA team is currently operational and committed to taking all necessary actions to address the ongoing market turbulence. During the OM flash crash, the MANTRA team did not engage in any selling activities, and all token allocations for the OM mainnet team and advisory team have been locked.

MANTRA has become aware that a significant amount of OM tokens have been transferred to exchanges and used as collateral. Based on MANTRA's independent observation and review of the event, it has been confirmed that a forced liquidation event occurred during a period of low market activity (around 2 a.m. Hong Kong time on Monday), resulting in excessive selling pressure on the OM token market. MANTRA will release detailed information regarding its OM token support plan, which will include an OM token buyback and token supply burn plan. MANTRA's CEO, John Patrick Mullin, has publicly committed to burning the funds allocated to the team.

Mantra CEO Proposes Burning Personal OM Holdings to Regain Investor Trust

On April 16, according to CryptoSlate, Mantra CEO John Patrick Mullin proposed burning his personal holdings of OM tokens to restore investor confidence after the price crash. Mullin stated that his holdings are part of the team's reserved 300 million OM token, with a lock-up period until April 2027. Although Mullin made the commitment and disclosed his current holdings, he did not reveal the specific amount held, stating that he would disclose the holding amount once the burn plan is ready. According to Tokenomist data, Mullin currently holds approximately 772,000 OM tokens, which is less than 1% of the circulating supply of over 80 million OM tokens as of April 15.

April 15

Mantra CEO Interview Response to OM Flash Crash Event

Mantra CEO John Patrick Mullin was interviewed by Coinage in response to the recent flash crash of OM. He expressed a sense of responsibility for the losses experienced by investors and the community, emphasizing that there was no malicious intent. He committed to providing comprehensive transparent information and implementing a buyback and burn plan to support investors. He underscored the importance of transparency and ongoing communication, stating that the team would work diligently to rectify the current situation and restore the project's health. He thanked supporters and pledged to enhance future interaction and commitment to the community to ensure better development and responsiveness to investor needs. Related Reading: "Mantra Co-Founder Reveals: $5 Billion OM Token Flash Crash, Truly 'Luna 2.0'?"

April 14

11:22 PM: ZachXBT States Reef Founder Sought OM Collateral for Large Loan Prior to OM Flash Crash

At 11:22 PM, blockchain sleuth ZachXBT posted on social media indicating that he had continuously heard two names in connection with the Mantra event: Denko (Reef Finance founder) and Fukogoryushu. Allegedly, in the days leading up to the 90% flash crash of the OM token, these individuals sought collateralized loans using their OM holdings from multiple parties.

It's worth noting that Reef Finance has a history of market manipulation, with the token being delisted by Binance in October 2024, and the team reaching an $80 million OTC trading agreement with Alameda Research in 2021.

10:22 PM: MANTRA Investor Shorooq Claims Neither the Fund Nor MANTRA Team Sold Any Tokens During OM Flash Crash

At 10:22 PM, key MANTRA investor Shorooq Partners posted on social media stating that during the OM price collapse, neither the Shorooq fund, founding partners, nor the MANTRA team sold any tokens. They affirmed that there were no vulnerabilities in MANTRA, and on-chain data confirmed that a large-scale forced liquidation was the triggering factor. This cascading effect occurred during a period of low liquidity, leading to panic selling. Shorooq stated that as a long-term equity investor in MANTRA, their belief remained unwavering.

BlockBeats previously reported that the RWA project MANTRA announced the completion of an $11 million funding round on March 19, 2024, with Shorooq Partners leading the round and participation from Three Point Capital, Forte Securities, Caladan, Virtuzone, Hex Trust, Token Bay Capital, GameFi Ventures, Mapleblock, Fuse Capital, 280 Capital, among others.

18:28: MANTRA Staking Address Sends 38 Million OM to Binance Cold Wallet, Equivalent to $26.96 Million

According to OnchainLens monitoring, 2 hours ago, the MANTRA DAO staking wallet sent 38 million OM tokens (approximately $26.96 million) to the Binance cold wallet.

18:10: Laser Digital Responds to OM Price Plummet: Not Involved in Sell-Off, Core OM Investment Still Locked
At 18:10, Laser Digital issued a statement saying, "We would like to directly address recent speculation regarding Laser Digital's involvement in the OM (Mantra) price fluctuations. Laser has no connection to the recent price drop of OM. Claims on social media regarding Laser's involvement in 'investor sell-off' are incorrect and misleading."

They openly tagged some OM on-chain transfer records related to the Laser wallet. We categorically state: Laser did not deposit any OM tokens into OKX. The mentioned wallets related to OKX are not Laser's wallets. We remain consistent with our partners, and our core OM investment is still locked. We have no interest in pressuring the token or compromising the project's stability. Transparency is crucial."

15:56: OKX Releases Announcement on MANTRA (OM) Price Volatility

According to the official announcement, OKX recently observed significant fluctuations in the MANTRA project's OM token: after a sharp rise in the token's value in early November 2024, on April 14, 2025, around 2:28:32 am (UTC+8), rapid price drops and amplified trading volume first appeared on other trading platforms, followed by a market-wide crash of over 80% in a short period of time.

Meanwhile, based on on-chain public data and exchange internal data, since October 2024, the project's tokenomics have undergone significant changes; and from early March to the present, multiple on-chain addresses with similar operation patterns have exhibited large deposit and withdrawal behavior across various exchanges. In light of the above market risks, OKX has adjusted a series of platform risk control parameters to mitigate market risks. At the same time, OKX reminds users that the recent market risks are high, and some tokens may have undergone significant changes in token supply, leading to significant price fluctuations and impacts. Users are advised to carefully analyze the project's situation when trading.

2:21 PM: An address received 2 million OM tokens 5 hours before the OM Flash Crash, now holding unrealized losses exceeding $11 million

At 2:21 PM, according to Lookonchain monitoring, five hours before the OM Flash Crash, a wallet that had been dormant for a year transferred 2 million OM tokens to a wallet possibly associated with Shane Shin (@KeunShane). The wallet received 2 million OM tokens at a price of approximately $12.58 million but is now worth only about $1.57 million.

Around 2 PM: VC Insider Reveals: OM Mode is Ground-Push OTC, with a scale of $500 million

Around 2 PM, HashKey Capital member Rui and ArkStream Capital founding partner Ye Su disclosed on X that the crypto project MANTRA (OM) is a "Ground-Push OTC" with an off-exchange volume of $500 million, operating in a cycle with the model of "new OTC tokens receiving old OTC sell-offs" until the last unlocked chips "OTC unmoved" collapsed.

As per the disclosure, in 2023, when the OM token's Fully Diluted Valuation (FDV) dropped to nearly $20 million nearing a collapse, with the intermediation of a middleman, a Middle Eastern capital intervened in the acquisition, retaining only the CEO position. This Middle Eastern capital held a large number of mansions, resorts, and other tangible assets, subsequently packaging OM into a Real-World Asset Tokenization (RWAfi) project. Ye Su stated that under tight control, OM achieved the highest increase on Binance in 2024, realizing a 200x growth, and the team is still promoting the "OTC desk" business.

11:30 AM: Binance Responds to OM Flash Crash: Primarily Caused by Cross-Exchange Platform Settlements, Will Monitor Developments Closely

At 11:30 AM, Binance officially announced that they had noticed significant price volatility in the MANTRA token OM. A preliminary investigation revealed that the recent day's fluctuation was primarily caused by cross-platform liquidation. Since October last year, Binance has implemented various risk control measures on the OM token, including reducing leverage levels. Binance will continue to monitor leverage levels and make adjustments based on market conditions to enhance risk control, reduce volatility, and help mitigate risks.

Since January this year, Binance has also activated a pop-up reminder on the OM spot trading page, warning users that the token's tokenomics had undergone significant changes, with an increase in the token's supply. Binance will continue to closely monitor the situation and take appropriate action to protect user interests and maintain the platform's stability and fairness.

9:06 AM: 10 OM Positions Worth Over One Million Dollars Liquidated in the Past 12 Hours

At 9:06 AM, according to Coinglass data, 10 OM positions worth over one million dollars were liquidated in the past 12 hours.

On-chain Monitoring: Before the OM Flash Crash, 4.5% of Circulating Supply Deposited to CEX, Strategic Investor Laser Digital Suspected
At 8:40 AM, according to The Data Nerd monitoring, 6 hours ago, OM's price plummeted 90% from $6 to $0.4. In the last 3 days, 24.4 million OM tokens (approximately $1.4394 billion at the time) were deposited from 5 wallets to OKX. Four of the wallets followed the same pattern: withdrawals from Binance last month followed by deposits to OKX.

At 8:55 AM, according to Lookonchain monitoring, before the OM crash (since April 7), at least 17 wallets deposited 43.6 million OM (equivalent to $227 million at the time) to CEX, accounting for 4.5% of the circulating supply. Based on Arkham's tags, two addresses are associated with Laser Digital. Laser Digital is a strategic investor in MANTRA.

At 9:56 AM, according to Spot On Chain monitoring, in the 3 days leading up to the crash, a group of large OM holders transferred 14.27 million OM at an average price of $6.375 (approximately $91 million at the time) to OKX. Back in late March, they collectively withdrew 84.15 million OM from Binance at a total value of about $564.7 million (average $6.711). Now, after experiencing about a 90% crash, their remaining 69.08 million OM is only worth $62.2 million—an estimated total loss of $406.3 million. Spot On Chain suggests they may have hedged this position elsewhere, which could be one of the reasons for the crash.

8:28 AM: Total OM Contract Position Across the Network at $136 Million, with a 24-Hour Decrease of 60.95%; Over $65 Million in Liquidations in the Past 12 Hours, Second Only to Bitcoin

According to Coinglass data, the total OM contract position across the network is $136 million, holding 134 million OM tokens, with a 24-hour decrease of 60.95%. Binance has the highest market share, with an OM contract position on the platform of $33.038 million, accounting for 24.33%. In the past 12 hours, over $65 million in OM liquidations have occurred across the network, with long liquidations amounting to $47.325 million. The cryptocurrency's liquidation volume in the past 12 hours is second only to Bitcoin.

MANTRA Founder: OM's Sharp Decline Not Due to Binance, But Due to Improper Forced Liquidations by Other CEXs

At 7:16 AM, MANTRA Founder JP Mullin responded to the OM sharp decline event on social media, stating that this market imbalance was not caused by the team, MANTRA Chain Association, its core advisors, or MANTRA's investors selling off tokens, nor was it due to Binance. Instead, it was caused by improper forced liquidations by other CEXs.

JP Mullin stated that this market imbalance was not caused by the team, MANTRA Chain Association, its core advisors, or MANTRA's investors selling off tokens. The tokens are still in a locked state and follow the disclosed unlocking schedule. In the next few hours, the team will hold a community AMA on the X platform to further discuss these events.

4:51 AM: OM Responds to Early Morning Plummet: Volatility Triggered by Disorderly Liquidation, Not Team's Doing

At 4:51 AM, the MANTRA community released a statement stating that today's abnormal volatility in OM was triggered by a "disorderly liquidation," unrelated to the project itself, and emphasized that the event was not caused by the team. The official statement mentions that an investigation into the specific reasons is ongoing, and more details will be released soon.

MANTRA stated that the timing and depth of the crash indicate that account positions were closed very abruptly, with insufficient warning or notice. This occurred during the early morning hours of low liquidity in Asia, suggesting at least some level of negligence on the part of CEXs or possibly intentional market manipulation.

「CEX partners play a crucial role in providing liquidity for projects like ours. We work closely with them; however, they still have significant discretion. When this discretion is exercised without proper internal and external oversight, market dislocations can occur, as seen recently, potentially harming the project and investors' interests. It needs to be made clear that this market dislocation was not caused by the team, MANTRA Chain Association, its core advisors, or MANTRA's investors selling tokens. The tokens remain locked and subject to the disclosed vesting schedule. OM's tokenomics remain unchanged, as outlined in our latest token report last week. Our token wallet addresses are online and visible.」

4 AM: Market Maker Algorithm Abnormally Boosts BTCDOM Perpetual Contract by 20%
At 4:01 AM, according to Formula News, an unidentified market maker experienced an algorithm error after the OM (Mantra) flash crash, unexpectedly causing a 20% surge in the BTCDOM (Bitcoin Dominance Index) perpetual contract on the Binance platform.

The BTCDOM index consists of the top 20 cryptocurrencies by market capitalization on Binance and Binance Futures, excluding BTC and stablecoins, with OM's weight accounting for only about 5%. This abnormal fluctuation is suspected to be due to a market maker's misjudgment, interpreting OM's price volatility as a change in market structure, leading to a strategic buy-in mishap.

3 AM: CZ Responds to OM Flash Crash: Avoid Chasing Narratives, CEXes Should Not Have Listing Processes Anymore, Investors Should Decide on Trading Pairs Themselves

Around 3 AM, following the OM plunge, CZ posted on X platform advising investors, 「Avoid chasing narratives. Stick to fundamental principles, projects with users, revenue, and profit.」 In response to community questions regarding 「OM's flash crash and whether the Binance platform conducted proper due diligence,」 CZ reiterated that CEXes should no longer have listing processes, and investors should decide on trading pairs themselves.

2 AM: OM Suffers Sudden Plunge, Over 80% Drop in 24 Hours

Around 2 AM on April 14, according to HTX market data, OM experienced a sudden drop of over 67% within a short period. Additionally, according to Coinglass data, OM's long positions worth $28.61 million were liquidated within an hour, with about $28.14 million in long positions and around $470,000 in short positions being liquidated. Subsequently, OM's 24-hour decline widened to over 80%.

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