Mantra’s OM Token Suffers 90% Crash Amid Allegations of Forced Liquidations

In an unexpected and dramatic turn of events, the OM token — the native cryptocurrency of the Mantra ecosystem — plunged by over 90% on April 14, sending shockwaves through the digital asset community. The selloff, which took place in a very short period of time, was described by the Mantra team as “bizarre” and potentially triggered by forced liquidations rather than normal market activity.

According to a statement released by the Mantra team, the massive decline may have been caused by a sequence of liquidations targeting key stakeholders and holders of staked or locked OM tokens. These actions appear to have been coordinated, leading to a cascade effect that rapidly pushed the token’s price to devastating lows. While some community members initially feared a rug pull or internal failure, the project’s leadership maintains that it was likely the result of external forces exploiting market weaknesses.

The team has announced an internal investigation to determine whether the liquidation event was due to a technical loophole, malicious manipulation, or an orchestrated attack exploiting high leverage and thin liquidity. While no names or entities have been officially identified, the incident has raised concerns about how vulnerable even established tokens can be in decentralized financial environments when large positions are involved.

Despite the shock, Mantra reassured users that the underlying platform remains operational and that none of its core services or infrastructure were compromised. The team emphasized its commitment to transparency and said it would provide more updates as facts emerge. Meanwhile, OM token holders are left grappling with uncertainty, and the broader crypto market is once again reminded of how quickly sentiment can shift in this volatile space.

This event has sparked renewed calls for risk mitigation tools, including improved tokenomics, better on-chain monitoring, and circuit breakers to prevent cascading selloffs. Whether Mantra can recover trust and price stability in the coming days remains to be seen — but the crash has already left a significant mark on the 2025 crypto narrative.