The sudden crash of MANTRA ($OM ) by over 90% was triggered by a combination of panic in the market, liquidations, and allegations against the project team. Here's a breakdown of what happened:

1. Panic Over Alleged Token Dumping

Rumors started circulating that the MANTRA team dumped a large amount of OM tokens on the market.

These rumors sparked fear and rapid sell-offs from holders who were worried the team was abandoning or manipulating the project.

Although the MANTRA team denied these claims and said their tokens were still in custody, the damage was already done in terms of market trust.

2. Massive Liquidations

The crash triggered over $28 million in liquidations in just one hour.

Most of these were long positions, meaning people betting that the price would go up got wiped out when it dropped sharply.

This caused a cascade effect: liquidations drove the price lower, which triggered more liquidations.

3. Lack of Communication and Transparency

The project's response came after the damage had started, which didn’t help with investor confidence.

Lack of immediate clarity made people assume the worst.

4. Rapid Rise Before the Fall

OM had a massive rally in recent months, rising from around $0.01 in January to over $6 in April.

That kind of growth often creates a fragile top, especially if there's any uncertainty or negative news.

In short, it was a mix of fear, rumors, high leverage trading, and a fast climb that set the stage for the crash.