Yesterday, the native token OM of the RWA project Mantra plummeted by nearly 90% within hours, with its market value evaporating over $5.5 billion, shocking the crypto market. On-chain detective ZachXBT revealed that Reef Finance founder Denko Mancheski allegedly sought large loans before the crash, and his past controversies have raised market manipulation suspicions.
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ToggleToken Collapse Shocks Market: OM Loses 90% of Market Value in One Day
Yesterday morning, the OM token price plummeted from around $7 to $0.86, a single-day drop of 87.7%. Mantra officially stated that a large investor conducted a "reckless liquidation" during low liquidity, triggering an avalanche of selling pressure. This flash crash instantly evaporated over $5.5 billion in OM's market value.
This has raised doubts about the Mantra team's risk control capabilities, with some users suspecting insider dealings and market manipulation behind the incident.
Under the Spotlight: Reef CEO Embroiled in Scandal Again
ZachXBT Reveals: Large Loans Trigger Trust Crisis
Yesterday on X platform, ZachXBT accused Reef founder Denko Mancheski and the account "@Fukogoryushu" of seeking large loans collateralized by OM tokens in the days before the OM crash. Market maker Vortex confirmed this information, which is seen as a potential market manipulation attempt.
Specifically, collateralized lending itself is not problematic, but "if the motivation, timing, and scale are combined with specific events (such as a crash), it raises suspicions of a pre-designed 'script'", especially when the person involved is a controversial figure.
Reef's Dark History Exposed: Not the First Time Involved in Market Manipulation Suspicions
It is known that Reef Finance has its own controversies:
In 2021, during an $80 million over-the-counter transaction with Alameda Research, it was criticized for lack of transparency.
In August 2024, Binance delisted the Reef token, causing its price to drop 64% in a single day.
These past records make Denko's actions in this event particularly sensitive, triggering community distrust.
Lookonchain: Massive Token Transfer Triggers Panic
Meanwhile, Lookonchain shows that before the crash, 17 wallets transferred approximately 43.6 million OM tokens (worth about $227 million at the time) to exchanges, accounting for 4.5% of the circulating supply.
Who dropped the price of $OM?
Before the $OM crash(since Apr 7), at least 17 wallets deposited 43.6M $OM($227M at the time) into exchanges, 4.5% of the circulating supply.
According to Arkham's tag, 2 of these addresses are linked to Laser Digital.
Laser Digital is a strategic… pic.twitter.com/zB8yAPRPSO
— Lookonchain (@lookonchain) April 14, 2025
Even without evidence proving Denko's connection to these addresses, these transactions are considered the trigger for panic.
Mantra and Laser Digital Step Forward to Refute
In response, Mantra CEO John Patrick Mullin denied that insiders were selling tokens, attributing it to market structural issues such as liquidity shortage. He also pointed out that some on-chain data, such as Arkham's tags, contain errors. Mantra's strategic investor Laser Digital also clarified that they did not participate in any selling and their holdings remain locked.
Legal Investigation Launched, Mantra Faces Setback
Shortly after the incident, Burwick Law, which previously helped handle investor losses in Pump.fun and Argentina President's token LIBRA cases, announced an investigation into Mantra, calling on victims to report their loss details.
MANTRA? $OM?
Burwick Law is investigating MANTRA & its OM token following a reported 90% price drop.
Our review covers tokenomics, large-scale transfers, and liquidity concerns.
If you lost money, realized or unrealized, see below.
Attorney advertising. Results may vary. pic.twitter.com/eXZxb7nJgL
— Burwick Law (@BurwickLaw) April 13, 2025
Is OM's Plunge a Manipulation Conspiracy or Market Storm? Still Unclear
The truth behind OM token's sudden crash remains unclear. Although there is currently no concrete evidence proving Denko's market manipulation, its past controversial record undoubtedly raises market vigilance about its actions, and investors' trust in Mantra may have long since crumbled.
Meanwhile, OM's plunge also highlights the high risks of insufficient liquidity and information asymmetry in the crypto market. Investors should enhance their understanding of project team backgrounds and on-chain data to avoid making irrational decisions during market panic.
Risk Warning
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
