After nearly three days following OM’s 92% crash, the Mantra team has finally released a formal post-mortem. While it’s positioned as a “fact-based assessment”, the document is as much a damage control effort as it is an explanation.
The report confirms what has been said before: the collapse was caused by a wave of forced liquidations during low-volume hours – and not by a team-led selloff or smart contract issue.
Table of Contents
There Were No Team Sales
The core message of the post is simple: “we didn’t sell”. According to the team, 100% of Mantra’s team and advisory tokens on the mainnet remain locked, and no OM was sold from internal wallets during the crash.
They point to the legacy ERC-20 OM token – launched in 2020 – as the real driver of the crash. Those tokens are now almost entirely in public circulation, spread across over 123,000 wallets. That version of OM is fully liquid and, critically, outside of the team’s control.
On the newer Mantra Chain mainnet, launched in October 2024, only 77.5 million OM is currently circulating. The team claims that just 8% of the total liquid OM is from the mainnet – with the rest tied to the original ERC-20 token.
What Triggered the Crash?
Mantra says the event began around 18:28 UTC on April 13, when large holders started getting liquidated. The team claims many of these positions used OM as collateral, and when the liquidations began, it created a cascading effect across multiple exchanges – especially during low liquidity hours.
Their explanation breaks it down like this:
- Initial liquidations triggered downward pressure.
- The falling price caused further automated liquidations.
- Spot price divergence between Binance and OKX emerged.
- The selling pressure created a self-reinforcing market spiral.
The team linked to an outside analyst’s thread showing how the divergence unfolded – but they still haven’t named any specific accounts or exchanges involved.
Planned Actions: Buyback, Burn, and Transparency
Mantra says this won’t end with a post. The team is rolling out a token support plan that includes:
- A buyback program to absorb some circulating supply
- A supply burn, led by a personal commitment from CEO JP Mullin to burn his own team allocation
- A new dashboard showing real-time token distribution
They also invited centralized exchanges to cooperate and share more detailed trade data related to the crash. While Binance and OKX have both issued general statements, neither has published on-chain data or user-level trade history to confirm what happened.
JP Mullin Not Giving Up
In a follow-up post, Mullin shared a personal note, thanking the community and saying the team has been working “across departments and time zones” to pull together the report:
In an earlier message, he said he would personally burn his own team token allocation – later clarifying that he meant his tokens, not the entire team’s:
What Now?
The token has recovered a bit from its low of under $0.50, but it’s still struggling to break above $1. While the new statement gave OM a small bounce, it’s nowhere near enough to talk about a recovery:
OM is still down roughly 85% from where it was trading just a week ago. And while Mantra’s plan to buy back tokens and increase transparency might offer a path forward, regaining trust after this kind of collapse won’t be easy.
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