Recently, Mantra’s collapse of OM has confused the community. $ 5.5 billion was erased from a series of moments. According to various analysis, this incident was caused by one merchant manipulating two exchanges.
This entire case emphasizes the weakness of many tokens projects. On the surface, despite its huge market cap, relatively small amounts of liquidity have completely collapsed.
OM collision search
Earlier this week, when MANTRA’s OM token collapsed, there were no questions left. It triggered charges of foul play, and rumors about internal rich activities have been wary of the company.
According to the new analysis, the initial trigger of OM collisions was a single merchant.
“This was due to the organization of the Binance Perpetuals Market. This triggered the entire cascade. The initial drop of less than $ 5 was triggered by a short position market of $ 1 million.
After triggering this initial abnormalities, the OM trader continued to dump short positions every 5 seconds to enhance the entire collision. As these persistent dumps continue in Binance, OKX Spot Market has received nearly 20%discount.
The seller finds the exit liquidity
In OKX, this strange behavior was caused by a huge whale. Limitable orders allow the seller to be willing to sell encryption assets. Orders run only if the market price reaches or exceeds the limit price. Until then, the order continues to open in the order.
The person has fixed the price to OKX for more than one minute with one hand, allowing market manufacturers and mediation bots to buy assets despite panic sales in a wider market. In this way, the perpetrator was able to abandon the OM token during the collision.
Therefore, this problem is that the evil actor did not fall because of the evil actor who tried to engineer. Instead, the problem is that a single group can thoroughly manipulate the market.
In order for such an attack to work, OM’s expandable market caps had to be more practically vulnerable than expected.
In other words, OM’s market cap was theoretically high, but it was necessary to invest a relatively little investment to collide the RWA token like a card’s home. Some speculated that the merchant was not trying to cause a crisis.
Rather, they may be investors who have been forced to sell due to loan conditions or dangerous limits. A little bit of manipulation could lead to greater disasters.
disclaimer
By complying with the Trust Project guidelines, Beincrypto is dedicated to unbiased and transparent reports. This news article aims to provide accurate and timely information. However, readers should check the facts independently and consult with experts before making a decision based on this content. Our Terms and Conditions, Personal Information Protection Policy and Indemnity Clause have been updated.