USD 80 million traders were liquidated by the mantra fall (OM)

Mantra (OM), the token of a network specialized in the tokenization of digital assets, suffered a collapse that questions the sustainability and credibility of the project.

In the last 24 hours, the OM price passed from $ 6.30 to 0.50, which represents a 90%drop.

This OM price drop caused Liquidations for more than 80 million dollarsaccording to Coinglass data.

Most traders had taken leverage positions in Long (long positions), a strategy that bets on the rise of the asset. However, the sudden collapse of Token took the market by surprise and forced the massive liquidation of these operations.

As explained in cryptopedia, cryptootic educational section, leverage in trading is a strategy that allows investors to expand their exposure to the market using funds provided.

With this tool, traders can bet that the price of a digital asset will rise (long position) or fall (short position).

If the market moves in their favor, they can obtain significant profits, but if the price moves against them, Losses can be greaterwhich leads to the settlement of the position if they do not have the necessary funds to maintain it.

In this context, John Patrick Mullin, co -founder of Mantra Finance, said through his personal account of X’s price movements were as a result of “reckless forced closures initiated by centralized exchanges in OM accounts.”

“The moment and the depth of the collapse suggest that a very sudden closure of accounts positions without sufficient warning or warning began,” he added.

In this regard, the founder of OKX, Star XU, also answered Mullin and said that They will prepare all the corresponding reports to determine what happened.

“It is a great scandal for the entire cryptocurrency industry. All unlocking and chain deposit data are public, and the guarantee and liquidation data of the main exchange platforms can be investigated,” he said.

Far from bringing peace of mind, or clarifying the situation, many users responded with criticism and questions about the lack of clarity and the possible responsibilities of the team behind mantra.

The user of X @follis_ stated: “Why did these closures started? And how could a project among the 25 best be in a position in which a few closures eliminate 5 billion dollars from their market capitalization?”

For its part, another user @ssurmas said: “It was a very manipulated price … Hence the discard. What a joke.”

It is important to point out that Mantra’s team had already faced accusations On the control it has on a large part of the circulating supply of Token, which could be interpreted as an attempt to manipulate its price.

In the midst of the stir that generated the news, Insomniac, a member of Castle Labs, warned that the main cause was the movement of millions of dollars in tokens OM towards the OKX and Binance exchange platforms in recent days.

A Wallet received approximately 36 million OM tokens from a Binance direction on March 21 and subsequently transferred around 4.3 million tokens to OKX in 8 transactions on Saturday.

This pattern is a sign that they could have sold their tokens, which caused a drastic fall in the quotation of OM.

Although three wallets were initially pointed out as responsible for the movement, a Glassnode report, data analysis firm ON-CHAINoffers a different vision.

According to their data, the increase in active addresses – which reached a maximum of 574 – and the peak of 1,400 transfers in just 10 minutes suggest that OM settlement was a rapid and generalized reactionwith the participation of a broader set of market actors.

As cryptootics has reported, Mantra had announced an association with Damac Group, a real estate giant from Dubai, to token assets valued at 1,000 million dollars.

These alliances outlined him as one of the most potential projects, In a context where the RWA industry aims to be one of the most disruptive trends of 2025.

However, this price drop in doubt the credibility of the project in the medium term.