MANTRA CEO Says Forced Liquidations Caused OM Token’s Sudden Price Drop

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• CEO Mullin denied allegations that MANTRA’s team sold OM tokens, emphasizing that team holdings remain locked per established schedules.
• Similar abrupt price drops recently occurred on Binance affecting tokens like Act I: The AI Prophecy, DeXe, and dForce.

The price of OM, the token from MANTRA, fell by around 90% late Sunday evening. John Patrick Mullin, the company’s CEO, stated publicly that forced liquidations on centralized exchanges caused this sudden decline.

Earlier in the year, OM reached a high of $9. Recently, the token traded around $6.30. However, on Sunday evening (UTC), OM’s value quickly dropped to $0.37. At the time of this report, the price has recovered slightly, settling above $1.

Mullin explained the event in a message to investors posted online. He said that exchanges unexpectedly closed traders’ positions without clear notice. These actions occurred during hours when trading volume was typically low, specifically Sunday evening UTC, which corresponds to early Monday morning in Asia. Mullin indicated these closures might have involved negligence or possibly deliberate actions by the exchanges, though he did not specify any particular platform.

Rumors online suggested MANTRA’s team members or advisors may have contributed by selling tokens. Mullin denied these accusations, stating clearly that neither the team nor advisors had sold any OM tokens. According to Mullin, the tokens owned by the MANTRA team remain under scheduled lockups. He also stated that no changes occurred in the token’s core economic model.

Recently, several cryptocurrencies have experienced similar sudden price drops after exchanges adjusted their trading rules. Binance, for instance, changed margin rules, triggering price declines of 50% for Act I: The AI Prophecy, 38% for DeXe, and 19% for dForce.

Investors remain doubtful about Mullin’s statement. They requested clearer details from MANTRA regarding the event. In response, Mullin announced plans for an open discussion with investors online. MANTRA, recently approved by Dubai’s Virtual Assets Regulatory Authority (VARA), became the first decentralized finance project to receive such authorization.

MANTRA (OM) is currently trading at $0.8751, experiencing a sharp 13.38% drop in the last 24 hours. This adds to a staggering 86% decline over the past month and 77% drawdown year-to-date, signaling heavy sell pressure and a major correction phase after previously explosive upside moves. Despite this crash, OM remains up 18.48% over the past year, and over 336% all-time, highlighting its high-risk/high-reward profile typical of fast-moving DeFi tokens.

Technically, OM is in a deep retracement, now testing psychological support at $0.85. If this level breaks, the next downside targets sit around $0.74 and $0.65, both marked by prior consolidation zones.

However, if price stabilizes and forms a bullish base, a relief bounce toward $1.05–$1.15 is possible. Momentum indicators like RSI are entering oversold territory, and short-term traders may eye this for a quick rebound play. The sharp volume spike suggests panic selling but also potentially marks capitulation.