Mantra (OM) crashed out of nowhere, dropping nearly 90% in a day — and Twitter completely blew up. Traders were blindsided, and influencers instantly started calling it a scam.
It all started early Sunday morning Asia time, when OM’s price suddenly tanked during low liquidity hours and traders lost a huge amount of money, approx $5 billion, as its market cap was down in billions, currently valuing at $692.05 million.
Mantra’s CEO and co-founder, JP Mullin, tweeted that the crash was triggered by centralized exchanges force-closing OM holders’ accounts without proper warning.
He called it reckless and pointed out that the timing – late Sunday night UTC – suggested either gross negligence or intentional positioning by these exchanges.
JP said the crash was not due to the team or investors selling tokens. According to him, all team tokens are still locked under the vesting schedule, and OM’s tokenomics are intact. He emphasized that their token wallet addresses are public and can be verified.
He added that Mantra has been building through multiple market cycles and that this situation wouldn’t stop them.
As the drama on X grew, Binance’s customer care account warned that they were aware of the OM volatility. They claimed it was due to cross-exchange liquidations and pointed out that Binance had already implemented risk control measures since October.
Binance said they’d already cut down leverage on OM and had been warning users through pop-ups since January about changes in how the token works. They claimed they’re actively watching things and will step in if needed. But honestly, the crash hit so hard and at such a weird time that people are starting to wonder if there’s more to the story.
Interestingly, despite Mantra’s earlier criticism, JP later replied to Binance’s post, saying the team had been in touch with Binance and thanked them for being communicative and supportive during the crisis. That sudden tone shift confused many, especially after he had just accused centralized exchanges of triggering the crash.
Meanwhile, crypto Twitter exploded. Influencer pages, meme accounts, and traders were all over it. Many called Mantra a scam; others blamed Binance and questioned how such crashes could happen without any safeguards.
JP urged people to avoid clicking on scam links and clarified that only his personal account and the official Mantra X handle should be trusted for updates. He also said they’d be hosting a community connect session on X to address everything and talk to the community directly.
Also Read: Trader Loses $3.3M on MANTRA (OM) as Its Price Crashes 90%
