In the early morning, the RWA project MANTRA (OM) fell 90% in a short period of time, from $6 to $0.5, and the market value evaporated by more than $5.5 billion. Three hours later, the MANTRA team (OM token issuer) issued a statement saying that the decline was caused by irrational liquidation and had nothing to do with the project itself, and stated that it was not the team's fault. Subsequently, OM rose from around $0.5 to $1.2, and briefly fell. According to Coinglass data, in just four hours, the OM contract liquidation volume reached $58 million.

Before this plunge, OM had been experiencing several violent price increases since November last year, and was called "a powerful monster coin" by the community. Related reading: (After evaporating $5.5 billion in 15 minutes, it soared 4 times. Why did the "monster coin" OM suddenly plummet?). So, what is the truth behind this plunge? Is it really caused by OTC liquidation? BlockBeats will continue to pay attention and update in real time. The following is a summary of the event timeline:

11:30: Binance responded to the OM flash crash: mainly caused by cross-trading platform liquidation, and will closely monitor the development of the situation

At 11:30, Binance officially announced that it had noticed drastic price fluctuations in MANTRA token OM. Preliminary investigations found that the fluctuations in the past day were mainly caused by cross-trading platform liquidations. Since October last year, Binance has implemented a number of risk control measures for OM tokens, including reducing leverage levels. Binance will continue to monitor leverage levels and adjust them according to market conditions to strengthen risk control and help reduce volatility.

Since January this year, Binance has also enabled pop-up reminders for OM on the spot trading page, reminding users that the token economics model of the token has undergone significant changes and the supply has increased. Binance will continue to monitor developments closely and take appropriate actions to protect user interests and maintain the stability and fairness of the platform.

9:06: 10 OM positions worth over $1 million were liquidated in the past 12 hours

At 9:06, according to Coinglass data, 10 OM positions worth over one million US dollars were liquidated in the past 12 hours.

On-chain monitoring: Before the OM flash crash, 4.5% of the circulating tokens were deposited in CEX, and strategic investor Laser Digital was suspected to be involved. At 8:40, according to The Data Nerd, 6 hours ago, the price of OM plummeted 90% from $6 to $0.4. In the past 3 days, 24.4 million OM (about $143.94 million at the time) were deposited from 5 wallets to OKX. Four of the wallets had the same operation mode: withdrawing from Binance last month and then depositing in OKX.

At 8:55, according to Lookonchain monitoring, before the OM crash (since April 7), at least 17 wallets deposited 43.6 million OM ($227 million at the time) to CEX, accounting for 4.5% of the circulating supply. According to Arkham’s tag, 2 of these addresses are associated with Laser Digital, a strategic investor in MANTRA.

At 9:56, according to Spot On Chain monitoring, just three days before the crash, a group of OM big holders transferred 14.27 million OM (worth about $91 million at the time) to OKX at an average price of $6.375. As early as the end of March, they jointly withdrew 84.15 million OM from Binance for a total price of about $564.7 million (average $6.711). Today, after a plunge of about 90%, their remaining 69.08 million OM is worth only $62.2 million-the total loss is expected to be as high as $406.3 million. Spot On Chain said that they may have hedged this part of the position elsewhere, which may be one of the reasons for the plunge.

8:28: The total OM contract position on the entire network is 136 million US dollars, a 24-hour drop of 60.95%; the total liquidation amount on the entire network in the past 12 hours exceeded 65 million US dollars, second only to Bitcoin

According to Coinglass data, the total OM contract position on the entire network is 136 million US dollars, with a position of 134 million OM, a 24-hour drop of 60.95%. Among them, Binance platform has the highest market share, with a position of 33.0383 million US dollars in OM contracts on the platform, accounting for 24.33%. At the same time, the total OM liquidation amount in the past 12 hours exceeded 65 million US dollars, of which long orders were liquidated for 47.3255 million US dollars. The liquidation volume of this currency in the past 12 hours is second only to Bitcoin.

MANTRA founder: OM's plunge was not caused by Binance, but by improper forced liquidation by other CEXs

At 7:16, MANTRA founder JP Mullin responded to the OM crash on social media, saying that this market imbalance was not caused by the team, the MANTRA Chain Association, its core consultants or MANTRA investors selling tokens, nor was it caused by Binance, but was caused by improper forced liquidation of other CEXs.

JP Mullin said that this market imbalance was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA's investors selling tokens. The tokens are still locked and follow the published unlocking period. In the next few hours, the team will host a community connection event on the X platform to further discuss these events.

4:51 am: OM responds to the early morning crash: volatility was caused by disorderly liquidation, not the team’s doing

At 4:51, the MANTRA community issued a statement saying that today's abnormal fluctuations in OM were caused by "disorderly liquidation" and had nothing to do with the project itself, and emphasized that the incident was not caused by the team. The official said that it is investigating the specific cause and will release more details as soon as possible.

MANTRA said the timing and depth of the crash indicated that account positions were closed very suddenly without adequate warning or notification. The fact that this occurred during the early hours of Asian time when liquidity was low suggests at least a degree of negligence on the part of CEX, or possibly deliberate market manipulation.

“CEX partners play an important role in providing liquidity to projects like ours. We work closely with them, however, they still have significant discretion. When this discretion is exercised without proper internal and external oversight, market dislocations can occur, as has recently occurred, to the detriment of projects and investors. To be clear, this market dislocation was not caused by a token sell-off by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors. Tokens remain locked and subject to the published vesting period. The token economics of OM remain unchanged, as we stated in our latest token report last week. Our token wallet addresses are online and visible.”

4 a.m.: A market maker’s algorithm abnormally pushed up the BTCDOM perpetual contract by 20%. At 4:01 a.m., according to Equation News, an unidentified market maker made an algorithmic error after the OM (Mantra) flash crash, and accidentally raised the BTCDOM (Bitcoin market capitalization share index) perpetual contract on the Binance platform by 20%.

The BTCDOM index includes the top 20 cryptocurrencies by market value on Binance and Binance Futures. Excluding BTC and stablecoins, OM’s weight is only about 5%. This abnormal fluctuation is suspected to be caused by the market maker misjudging the sharp fluctuations in OM prices as changes in market structure and mistakenly triggering strategic buying operations.

3am: CZ responds to OM flash crash: Don’t chase narratives, CEX should no longer have a listing process, investors should decide what to trade

At around 3 a.m., after OM fell, CZ posted a message on the X platform advising investors, "Don't chase narratives. Stick to basic principles, projects with users, revenue, and profits." In response to the community's question about "OM flash crash, whether Binance platform has done due diligence on it", CZ once again emphasized that CEX should no longer have a coin listing process, and investors should decide on their own trading products.

2am: OM suddenly plummets, with a 24-hour drop of more than 80%

At around 2 a.m. on April 14, according to HTX market information, OM fell by more than 67% in a short period of time. According to Coinglass data, OM's positions were liquidated by $28.61 million in the past hour, of which long positions were liquidated by about $28.14 million and short positions were liquidated by about $470,000. Subsequently, OM's 24-hour decline widened to 80%.