Major Exchange Addresses 98% OM Price Collapse: Market Manipulation and Insurance Fund Response

Source: CryptoNewsNet Original Title: Major Exchange Issues Statement on Altcoin Whose Price Fell 98 Percent – Who’s to Blame? Original Link: A major cryptocurrency exchange has issued a comprehensive public statement regarding the sharp price movements in the MANTRA (OM) token. The exchange announced that it has identified multiple linked accounts acting in a coordinated manner to artificially inflate the price of OM.

According to the exchange, these accounts borrowed USDT using large amounts of OM as collateral, thereby driving up the token price. The risk team flagged this as abnormal market activity and contacted the account holders, requesting corrective action. However, the parties involved refused to cooperate.

The exchange announced that it had taken control of the linked accounts to prevent the risk from escalating, and that this process led to a sharp drop in the price of OM. Only a very limited portion of OM was liquidated, but the entirety of the significant losses caused by the price collapse were covered by the Insurance Fund.

Third-party analysis indicated the price drop was largely due to perpetual trading on platforms other than this exchange. The Security Fund functioned flawlessly as designed during this event.

Critical unanswered questions remain regarding the incident. The source of the unusually large amounts of OM tokens has not been explained, and it remains unclear how specific groups control a significant portion of the token supply. All evidence and documentation have been submitted to regulatory bodies and law enforcement agencies, with multiple legal processes currently underway.

The exchange argued that the MANTRA team was shifting the blame instead of addressing the serious and suspicious activities that had occurred, which they called an unprofessional approach.