On April 13, 2025, the OM token, which is known as the native utility token of the Mantra platform, plummeted. As a result, its value dropped by an astounding 90%. The OM price quickly dropped from around $6.32 to a low value of $0.49. This collapse was precipitated by massive forced liquidations on the Bybit exchange.
The OM token has a number of important uses in the Mantra ecosystem, including staking, governance, and helping to pay transaction fees. Bybit is also credited with most of the liquidations, and many took place during times of low trading volume.
This caused a huge supply of OM tokens to flood the market as these liquidations opened new vaults massively increasing supply. The market’s illiquidity, defined by a lack of deep enough buyers to soak up the unexpected market-wide sell-off, magnified the price drop. This confluence of high leverage and low liquidity would prove disastrous for OM.
Mantra’s co-founder, John Patrick Mullin, said the crash was caused due to a spate of “massive forced liquidations” hurting large holders of OM tokens. The token’s already disastrous tokenomics only added fuel to the fire that caused the price crash to burn so hot.
The OM market was hit with an acute liquidity crisis. This situation exacerbated the effects of liquidations and accelerated the token’s descent in the death spiral. The Mantra team plans to release a post-mortem report explaining the crash, but here’s what we know.
