On Sunday, April 13, the OM token plunged over 90% from around $6.30 to below $0.50, sparking widespread market manipulation allegations among investors.

Low Liquidity and Suspicious Wallet Movements

Chen explained on Cointelegraph’s Chainreaction show that such crashes stem from high concentration of token holdings, opaque governance, and massive exchange inflows/outflows, especially during low-liquidity hours on weekends.

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Data from Lookonchain shows that 17 wallets, including at least two connected to Mantra investor Laser Digital, transferred 43.6 million OM tokens (worth ~$227 million) to centralized exchanges just before the crash — fueling insider dumping suspicions.

Mantra CEO Responds

Mantra CEO John Mullin denied that the token sales came from the team, attributing the crash to forced liquidations on centralized exchanges, possibly OKX, but confirmed the team was still investigating the full details.

Chen added that the on-chain data provided “a very strong signal of insider dumping,” with millions of tokens sent to exchanges in a short time frame.

Even Bitcoin (BTC) has seen similar weekend-driven volatility, with a sharp drop under $75,000 on April 6, attributed to weekend de-risking activity amid global tensions.

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