Who collapsed Om token from Mantra

This week, the price of OM token from Mantra suddenly collapsed. In a matter of minutes, the capitalization of cryptocurrencies sank by $ 5.5 billion. The specialists have found out who was behind this incident.

According to analysts, the cause of the fall of OM was the coordinated actions of one trader on two cryptocurrency exchanges.

What happened to OM

This week, the cost of OM token from Mantra suddenly collapsed. In less than an hour, the coin fell by 90%. Some began to assume that this happened due to the actions of the project team-she was accused of manipulations and insider activity.

However, the analyst under the nickname DOM in X (formerly “Twitter”) found that one trader was the cause of the fall of OM.

The trader continued to close short positions with an interval of five seconds, which aggravated the fall of OM. In parallel on the OKX exchange, the same player supported the artificially overstated price, creating a gap between venues by 20%.

The seller finds liquidity for exit

The unusual situation on OKX arose due to the actions of the whale. A large investor put up a limit order for sale, indicating the minimum price at which he was ready to get rid of the asset. Such a warrant is performed only when the market price reaches a given level. Until that moment, he remains open in the book of orders.

While investors in a panic sold OM on Binance at a low price, automatic trading systems on OKX, focusing on formal indicators, continued to buy a token at high cost. This allowed the manipulator to get rid of his reserves to complete collapse.

The situation clearly demonstrated three key problems:

• The extreme vulnerability of the OM market;
• inconsistency of his real liquidity of the declared capitalization;
• The frightening lightness with which one participant was able to manipulate the whole market.

Simply put, despite the formally high capitalization of OM, relatively small means were required for the collapse of this coin – and its price collapsed like a house of cards. Some experts even suggest that the trader did not initially plan to arrange a crisis.

Perhaps these were ordinary investors who were forced to sell OM due to a loan or risk limits. Their relatively small sales provoked a chain reaction, which led to a large -scale collapse.

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