The 10.32M MANTRA Selloff: Cause, Responsible
Published 6/14/2026, 7:45:09 AM
The 10.32M MANTRA selloff worth approximately $81K executed in one second was not a natural market event or MANTRA team action — it was part of a deliberate market manipulation scheme executed by a centralized exchange's subsidiary, according to a six-month forensic investigation by Inveniam published June 4, 2026.
Cause
The manipulation was orchestrated by a bad actor centralized exchange that enabled its subsidiary to take control of client accounts without authorization. The scheme involved:
- Heavy short-selling positions established across perpetual swaps marketplaces
- Client account funds used to cover spot delivery requirements for the short positions
- This structure allowed the coordinated dump of 10.32M tokens in approximately one second
Responsible Entity
A centralized exchange's subsidiary was identified as the bad actor. The investigation found "significant and clear evidence" of wrongdoing by this exchange entity. Notably, OKX founder Star Xu described the event as "a big scandal to the whole crypto industry" and stated that "all major exchanges' collateral and liquidation data can be investigated."
Timing Context
| Date | Event |
|---|---|
| April 13, 2025 | OM token crashed 90%+ from ~$6.30 to under $0.50 within hours |
| ~2:28:32 AM UTC+8 | Initial price drop detected on OKX |
| Sunday evening UTC | Low-liquidity weekend hours — early morning Asia time |
The specific 10.32M dump occurred during this cascade of forced liquidations triggered during extremely low-liquidity conditions.
Market Conditions
- Tokenomics changes since October 2024 had prompted exchanges to adjust risk controls
- 17 wallets had deposited 43.6 million OM (~$227M) to exchanges in the days leading up to April 13 — representing 4.5% of circulating supply
- High leverage on OM pairs combined with weekend thin trading created extreme vulnerability
- Self-reinforcing panic selling amplified the initial drop into a complete collapse
Exculpatory Findings
Multiple independent investigations confirmed:
- MANTRA team wallets sold 0 tokens during the collapse
- Laser Digital (Nomura subsidiary) and Shorooq Partners denied involvement and provided wallet proof
- ChainArgos independently corroborated Inveniam's findings
- VARA (Dubai regulator) did NOT suspend MANTRA's license following investigation — VARA's public register shows Mantra Finance FZE remains licensed (VL/25/02/001)
Key Data Points
| Metric | Value |
|---|---|
| Tokens dumped in specific transaction | 10.32M OM (~$81K) |
| Total market cap lost | $5–6 billion |
| Price drop | 90%+ (~$6.30 → $0.49) |
| Liquidations within 24 hours | $66.97M – $74.7M |
| OM futures open interest collapse | $345M → $130M |
| Pre-crash deposits to exchanges | 43.6M OM (~$227M) |
The investigation was conducted over six months using forensic analysis from two major international AM100 law firms, well-known forensic accountants, on-chain data research, and in-depth interviews with MANTRA, partners, and investors. Inveniam subsequently invested $20M in MANTRA following the investigation.
Summary
The 10.32M MANTRA selloff was driven by a coordinated manipulation scheme orchestrated by a centralized exchange's subsidiary that exploited low-liquidity weekend conditions, heavy leverage, and unauthorized access to client funds to execute heavy short-selling positions — culminating in a cascade that wiped out $5–6 billion in market cap. What remains open: the specific identity of the exchange subsidiary has not been publicly named, and some key quotes attributed to Star Xu remain unconfirmed.