Crypto traders were reminded of Terra’s LUNA early Monday as trendy real-world asset upstart Mantra’s OM token dropped 90% within hours on no sudden catalyst — with conspiracy theories and allegations running abound among crypto circles.

OM plunged from over $6 to just over 40 cents late Sunday to early Monday in typically low liquidity hours for the crypto market — where outsized volumes can trigger massive price movements in either direction.

“We want to assure you that MANTRA is fundamentally strong,” the team said in an X post following the price drop. “Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details about what happened as soon as we can.”

Mantra lets users tokenize real-world assets (RWAs) like real estate and commodities, enabling compliant digital investments in tangible assets. Its OM token facilitates transactions and governance.

In January 2025, Mantra partnered with DAMAC Group, a UAE-based conglomerate, to tokenize $1 billion in assets, including real estate, hospitality, and veri centers.

OM was among the biggest market gainers in 2024, rising more than 400% on relatively low public conversation on crypto-related social media – which intrigued traders and investors alike on the strength of the move.

Meanwhile, co-founder John Patrick Mullin alleged the movement was likely due to exchanges closing OM positions, which impacted all market exposure.

“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders,” Mullin said in an X post. “The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice.”

He further alleged “intentional market positioning taken by centralized exchanges.”

OM-tracked futures recorded over $50 million in liquidations on the long side, a record figure for the tokens. Open interest slumped from $345 million to just over $130 million, indicating a quick exit for unsettled futures bets.

Some prominent crypto voices aren’t buying that narrative, however, with scores of dismissive replies under Mullin’s posts.

OKX founder Star Xu added in a response to a separate post that flagged over $220 million in token deposits to exchanges before the price crash.

“It’s a big scandal to the whole crypto industry. All of the onchain unlock and deposit veri is public, all major exchanges’ collateral and liquidation veri can be investigated. OKX will make all of the reports ready,” Xu said.