The sudden collapse of MANTRA’s OM token has sent shockwaves through the crypto market but drove its derivatives trading volume up by an eye-popping 7,000% in just 24 hours.
Data from Coinglass reveals that trading activity surged to over $6 billion during this period, with Binance and Bybit accounting for more than half of the volume. This sharp uptick came alongside a severe drop in OM’s market cap from $6 billion to just $500 million.
The spike in derivatives activity suggests that speculative traders moved quickly to profit from OM’s extreme volatility.
However, this frenzy came at a cost, with over $76 million in liquidations recorded over the same time frame.
Concurrently, OM’s futures open interest across major derivatives platforms dropped 62% to $132 million, signaling waning trader enthusiasm and heightened market caution.
Open interest, which reflects the number of active futures contracts yet to be settled, often serves as a barometer for broader market sentiment.
Binance and OKX face scrutiny
Mantra co-founder John Patrick Mullin blamed the token crash on “reckless forced closures” by centralized exchanges targeting OM account holders.
However, his comment drew quick responses from Binance and OKX, two platforms central to the controversy.
On April 14, OKX acknowledged “unusual volatility” around OM at 2 A.M. HKT. It responded by tightening its risk controls and issuing warnings on the token’s trading pages.
The exchange’s CEO, Star Xu, called the situation a serious setback for the crypto space and urged the community to examine on-chain data to understand what truly happened.
He said:
“All of the onchain unlock and deposit data is public, all major exchanges’ collateral and liquidation data can be investigated. OKX will make all of the reports ready.”
Star’s comment is particularly prescient, considering market analysts had revealed that 17 wallets deposited 43.6 million OM, about 4.5% of the token’s circulating supply, onto exchanges days before the crash.
Most of these deposits landed on OKX and Binance, and two of those wallets were reportedly linked to Laser Digital, a strategic investor in the MANTRA project.
On the other hand, Binance said:
“[Our] initial findings indicate that the developments over the past day are a result of cross-exchange liquidations.”
The exchange further stated it had already implemented risk control measures for OM starting in October 2024.
These included lowering leverage and introducing alerts to inform traders about major changes in the token’s structure, including a significant increase in supply.
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