The OM token crash saw $6 billion lost in value in just 30 minutes yesterday.

The Terra Luna like collapse has left the investors questioning if all of this was planned.

The OM token crash saw $6 billion lost in value in just 30 minutes yesterday. The Terra Luna like collapse has left the investors questioning if all of this was planned.

There were plenty of warning signs that were ignored which led to this massive loss. Crypto Jargon takes a look at what exactly happened in the OM crash and if there is any chance to recover the lost funds. On April 13, 2025, at around 6:00 PM UTC, the price of OM, a token created by the Web3 project MANTRA, plummeted from $6.70 to $0.37 in a matter of an hour. The token lost a staggering 93% of its value in an hour, rendering huge losses to investors. On the other hand, some traders managed to make massive profits by shorting OM. But what exactly caused the crash?

At 2:00 PM UTC, OM co-founder Mullin announced on X that he had "no wifi" and would be "offline for a bit." Just four hours later, at 6:00 PM UTC, the price of OM crashed. Moreover, at 9:00 PM UTC, MANTRA’s Telegram Channel was mysteriously deleted.

A total of 3.9 million OM tokens were sent to OKX on April 12th, a day before the crash. According to Arkham, the liquidations began around 1:00 AM on April 13th and continued until 1:00 PM, triggering a chain reaction that ultimately led to OM’s collapse.

According to reports, OM’s collapse was triggered by $66.97 million in forced liquidations over 12 hours, but the problems had been growing for months. Notably, the team controls about 90% of the OM supply, which gives them significant power to influence the price.

However, investor trust was already low. Just a month ago, MANTRA’s OM airdrop blacklisted over 50% of wallets claiming that they were ‘bots’ without any evidence.

The terms for unlocking funds were also changed multiple times: first a 20% unlock, then 0.3% per day and finally 10% unlock with vesting period until 2027, leaving the investors disappointed.

The warning signs kept growing. Market makers were allegedly pumping up the token’s price. And the airdrops kept getting delayed raising concerns over price drop.

In the days before the crash, on-chain data showed that 17 wallets sold 43.6 million OM, worth around $227 million, to exchanges, which was 4.5% of the total supply.

Laser Digital denied any connection to OM token sales on OKX, claiming that they have not deposited tokens there. Shorooq Investors also denied selling OM tokens, blaming the crash on a large forced liquidation, as shown by on-chain data.

Mullin also denied Arkham’s data, saying that they didn't know who owned the wallets selling OM before the crash. He claimed the wallets were “mislabeled” and referenced a transparency report from April 8 with key wallet addresses.

Panic broke out in the market when the $3.9 million worth of OM appeared on OKX. Investors feared drop, selling pressure surged which was further aggravated by OTC deals where insiders sold tokens at a 50% discount to large investors who dumped them after crash. Short sellers profited as stop-losses triggered and borrowed positions were liquidated.

Within 60 minutes, OM lost 93% of its value and over $5.5 billion in market cap was vanished. The community were quick to compared this to the LUNA crash.

MANTRA’s Telegram channel was suddenly deleted, leaving behind a creepy last message: “LUNA 2.0”. With no updates and no accountability, the community was left in the dark.

The Mantra team claims that the collapse was caused by broader market pressures and centralized exchanges closing positions, triggering a chain reaction of liquidations.

OKX added that the price drop started with a spike in trading volume and initial declines in price on exchanges other than OKX, before spreading to the entire market. On April 14, OKX announced that Mantra’s tokenomics had changed "significantly" since October 2024 and warned of "suspicious activity" across several exchanges.

Rumors of a rug pull also began circulating with traders fearing that developers might abandon the project.

Market investor Gordon warned that it could be biggest rug pull since LUNA/FTX.

However Mantra executives have maintained that they are cooperating fully with relevant authorities in response to the recent market events and providing all necessary information and documentation to any institutions or organizations conducting investigations.

They have also cooperated with major exchanges to ensure smooth operation and efficient communication.