$OM OM Sales Summary: What Happened?

The recent OM crash caused confusion within the community. A sudden sell-off led to a loss of 5.5 billion dollars in value. The cause of the event was a trader trying to manipulate prices on two different exchanges.

This situation revealed that although some crypto projects like OM seem to have a high market value, they actually have weak liquidity.

How Did It Crash?

A trader sold a short position worth about 1 million dollars on Binance, pulling the OM price below 5 dollars.

This sudden drop triggered a chain of liquidations.

The trader continued to control the price by making new sales every 5 seconds.

At the same time, there was nearly a 20% drop in the OKX spot market as well.

What Did the Seller Do?

The trader managed to hold the price steady for a while on the OKX exchange, activating market makers and arbitrage bots. Thus, during the decline, they were able to sell their OM tokens.

What Is the Real Problem?

The issue was not just manipulation; the real problem was that the market structure of OM was very vulnerable to such an attack. Despite appearing to have a high market value, even a small sale could lead to a significant crash. According to some, the trader's intention was not manipulation but rather a forced sale due to risk rules. However, even a small movement caused a major panic.