Crypto News: Mantra CEO Blames 90% OM Token Crash on Forced Liquidations by Centralized Exchanges

Mantra CEO JP Mullin attributes OM token’s 90% crash to forced liquidations by centralized exchanges during low-liquidity hours, assuring no insider sales and reaffirming project stability.The OM token, native to the Mantra blockchain ecosystem, suffered a catastrophic plunge of over 90% this past weekend, falling from a high of $6.30 to under $0.50 in mere hours. The Mantra community was left stunned, prompting an urgent response from the project’s leadership.

JP Mullin, CEO of Mantra, has since broken his silence, placing the blame squarely on forced liquidations triggered by centralized exchanges. According to Mullin, the incident was not related to any internal flaws, token unlocks, or insider sales—but rather a combination of low weekend liquidity and aggressive liquidation mechanisms.

What Caused the Crash?

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 said in a public statement. “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.

Community Reacts, CEO Steps In

In the hours following the crash, panic spread throughout the Mantra community, with many investors voicing concerns over the project’s future. In response, 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.”

He emphasized that Mantra’s roadmap remains unchanged and that the fundamentals of the project are stronger than ever. He also confirmed the team is working closely with exchanges to understand what happened and how similar events can be prevented in the future.

From All-Time Highs to Uncertainty

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.

Looking Ahead

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.”