Mantra’s OM Token Plummets 90% in 24 Hours, Sparking Panic Across Crypto Markets
The crypto world was rocked this week, as Mantra’s OM token suffered a dramatic 90% price collapse within just 24 hours, wiping out millions in market value and sparking fears of deeper instability in the DeFi sector.
The unexpected nosedive saw OM plunge from around $0.90 to just $0.09 in a single trading day, catching both retail investors and institutional holders off guard. Many holders were locked out of positions as liquidity dried up and automated liquidations swept through major exchanges.
John Patrick Mullin, co-founder of Mantra, took to social media to calm investor anxiety, blaming the price crash on “forced liquidations” caused by several exchanges aggressively closing OM margin positions. “This was not a rug pull" It was a cascading liquidation event, triggered by over-leverage and exchange risk controls,” Mullin posted on X (formerly Twitter).
Despite assurances, the damage had already occurred. Online forums and Discord channels were flooded with frustrated users demanding accountability and transparency, while analysts warned of a potential contagion effect across smaller DeFi tokens if confidence isn't quickly restored.
Mantra, previously hailed as a rising star in the decentralised finance space, has been enjoying significant momentum leading into Q2 2025. The project had just announced new staking features and was preparing for a protocol expansion across Layer 2 chains. OM had surged over 120% in March, making the token a target for leveraged speculation.
“This was a classic case of too much hype, too little stability,” said Arjun Shah, an analyst at CryptoFlow Capital. “OM became highly exposed to derivatives and leverage. Once the momentum broke, the entire structure collapsed swiftly.
The broader market response was swift. Decentralised exchanges (DEXs) like Uniswap reported a spike in trading activity and slippage alerts for OM, while centralised platforms, including Binance and OKX, temporarily suspended OM margin trading, citing "unusual volatility."
Investor sentiment remains fragile, particularly among retail traders who were caught in the storm. “I lost 70% of my position in a matter of hours,” said one Reddit user, claiming they had held OM as part of a long-term staking plan. “There was no warning, no support. Just a complete wipeout.”
Experts have also raised concerns about the lack of circuit breakers in many DeFi ecosystems, where price collapses can spiral without pause, unlike traditional markets that impose trading halts during extreme volatility.
In response, the Mantra development team has proposed a review of OM’s tokenomics and a vote on deploying a community fund to help users recover partial losses. A governance proposal is expected to go live by the end of the week.
Still, many in the space are calling for stronger self-regulation and transparency measures across DeFi platforms, especially as new investors continue to flood into the crypto space amid rising global adoption.
As the dust settles, one thing is clear: the collapse of Mantra’s OM token serves as a painful reminder of the fragility of digital markets, particularly when investor euphoria outpaces fundamental stability.