Mantra CEO JP Mullin Blames 90% Crash of OM Token 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.

Mantra (OM) tokens crashed more than 90% over the weekend as a large leveraged position was liquidated by a centralized exchange during low-liquidity hours, the project CEO said.

What Happened: The OM tokens, native to the Mantra blockchain ecosystem, suffered a catastrophic plunge of over 90% this past weekend, plummeting from a high of $6.30 to under $0.50 in mere hours. The project’s community was left stunned, prompting an urgent response from the project leadership.

JP Mullin, CEO of Mantra, has since come forward to attribute the incident to forced liquidations triggered by centralized exchanges during a period of low market activity.

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.

The sudden drop occurred during the evening hours on Sunday (UTC), a period typically marked by minimal trading activity across global markets. During this time, a large leveraged position was forcibly liquidated, which in turn triggered a cascade of automatic sell orders on several exchanges.

“This wasn’t caused by us or by our investors. All OM tokens are still locked up per our vesting schedule. No one on the team dumped anything. It was an unfortunate situation where someone got liquidated hard, and it snowballed rapidly in thin weekend markets,” Mullin stated in a public statement.

He further explained that the lack of liquidity on centralized exchanges amplified the damage, causing OM’s value to plummet far more quickly than it would have in times of normal market depth.

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Community Reacts, CEO Reaffirms Plans

In the hours following the crash, panic and confusion spread rapidly through the Mantra community, with many investors expressing concerns over the project’s future.

However, Mullin took to social media to provide updates and interact with community members, referring to them as “OMies” and “Sherpas” in recognition of 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. While this incident was outside of our control, we are focused on building long-term value,” Mullin said in a statement.

He added that Mantra’s roadmap remains unchanged and the fundamentals of the project are stronger than ever. The CEO also confirmed that the team is closely engaged with exchanges to gain a comprehensive understanding of what transpired and how similar events can be prevented in the future.

From All-Time Highs to Uncertainty

Prior to the crash, OM had experienced impressive growth, reaching an all-time high of $6.13. The surge was fueled by Mantra’s expansion in the real-world asset (RWA) tokenization space, which includes a 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, at least temporarily, threw a shadow over its momentum.

Still, industry analysts believe that as long as Mantra continues to deliver on its roadmap and maintain transparency with its community, the project can recover from this setback.

What’s Next: The OM token’s collapse is a painful reminder of how quickly things can change in crypto markets, especially during times of low liquidity. However, the Mantra team’s swift response and transparent communication could help restore confidence among investors.

As Mullin concluded, “This isn’t the end. It’s just a bump on a much bigger journey.”