A Brief Analysis of the Causes of OM's Flash Crash: The Reappearance of a Luna-style Collapse? Five Major Reasons for a 90% Plunge

1. Suspected Team Sell-off + Large Holder Dumping

A certain whale group transferred 14.27 million OM (approximately $91 million) to OKX three days before the crash, which is suspected to have triggered panic due to early sell-off. The team was revealed to control 90% of the token supply, with a single wallet holding 792 million OM, leading to a high degree of price manipulation.

2. Off-exchange OTC Triggering a Death Spiral

It is rumored that the team sold to whales off-exchange at a 50% discount, causing the price to halve, leading to panic selling by OTC buyers and instant depletion of liquidity.

3. Avalanche Effect of Leveraged Liquidation

The price drop triggered forced liquidations on CEXs, with a series of liquidations during low liquidity periods in Asia, resulting in over $68.5 million in liquidations within 24 hours.

4. Long-term Breakdown of Community Trust

Airdrop rules repeatedly shrinking, governance voting being ineffective, and indefinite extensions of lock-up periods have made community grievances a trigger for collapse.

5. CEX Risk Control Negligence or Manipulation?

MANTRA accused a certain exchange of 'reckless liquidation' leading to the flash crash, while Binance distanced itself, claiming to have implemented leverage restrictions early on. The team denied selling off, but on-chain data contradicts their response.

In summary: High control + OTC + Leverage = Perfect Harvest. Beware of all 'Strong Whale Coins', who will be next?