Why did the crypto trader go to therapy?
Because even his portfolio had commitment issues.
In this publication, we’re breaking down the chaos behind Mantra’s OM token crash that wiped out billions in market value in just a few hours. If you’re into crypto—or even just curious—you’ll want to read this.
A 90% drop in hours. $72 million liquidated. This wasn’t your average Sunday scroll.
On April 14, OM—the native token of the Mantra blockchain—plummeted from $6.30 to under $0.50. Speculation swirled, panic spread, and many were left wondering if this was another FTX-style meltdown. While not officially labeled a scam, the situation has red flags worth dissecting.
How It Went Down:
- Sudden Drop: OM’s value nosedived over 90% within hours, triggering mass confusion across the crypto space.
- Liquidations Galore: Roughly $72 million in OM holdings were forcibly liquidated.
- The Blame Game: Mantra cofounder JP Mullin blamed centralized exchanges for “reckless forced closures” of OM accounts, allegedly without warning.
- Timing Suspicion: The crash happened during low-liquidity hours—Sunday evening UTC—when fewer buyers and sellers are active.
- Exchange Response: OKX said it had flagged major changes in OM’s tokenomics since October 2024, with evidence of possibly coordinated large-scale token movements.
Who Got Hit:
This situation primarily impacted crypto traders and investors, especially those holding OM or trading it on centralized platforms like OKX. Newer investors may have been caught off guard, assuming the token was stable based on its previous performance.
Real-Life Example:
JP Mullin, Mantra’s cofounder, took to X (formerly Twitter) to calm nerves:
“The OM market movements were triggered by reckless forced closures… the timing and depth of the crash suggest a degree of negligence at best, or possibly intentional market positioning.”
Meanwhile, OKX added a warning to OM’s token page and hinted at prior unusual activity dating back to March 2025. That’s a lot of smoke—so is there fire?
Why You Should Care:
This event shows how fragile the crypto ecosystem still is. A few clicks and trades can trigger a market spiral. Even if you don't hold OM, the crash highlights:
- How vulnerable tokens are to sudden market changes
- The risk of centralized platforms having too much power
- How quickly billions can vanish in unregulated waters
And if you do hold OM? The coin's still only trading around $0.68 as of Monday—down 90% from a week ago.
What You Can Do:
- Diversify. Don’t put all your eggs (or tokens) in one blockchain.
- Watch the warning signs. Sudden tokenomics changes? Insider rumors? That’s your cue to pause.
- Use stop-loss orders. They can help limit how much you lose during volatile crashes.
- Track token updates. If a coin changes its roadmap or supply strategy, that’s huge.
- Be cautious on weekends. Low liquidity = high manipulation potential.
Quick Tips & Updates:
Quick Tip #1: Did you know? Crypto markets never sleep—but scammers know that Sunday nights often mean fewer eyes watching.
Pro Tip: Bookmark sites that track token contract changes and whale movements. Big moves by insiders often signal incoming storms.
Stay safe, stay informed.
Keywords Defined:
- Tokenomics: The supply, distribution, and economic model of a cryptocurrency.
- Liquidation: Forced selling of assets when traders can't meet margin requirements.
- Centralized Exchange (CEX): A platform that facilitates crypto trades but controls users’ keys—examples include Binance, OKX.
- Rug Pull: A type of scam where developers suddenly remove liquidity or disappear with investor funds.
- Low-Liquidity Hours: Times when fewer people are trading, making assets more vulnerable to sudden price swings.
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