Mantra Token Crash Raises Concerns About DeFi Liquidity Risk and Market Manipulation

The recent collapse of the Mantra (OM) token, resulting in a $5 billion loss, has ignited questions about the stability of decentralized finance platforms. This incident highlights the crucial need to understand liquidity risks and potential market manipulation. Analysis by Kaiko suggests that low liquidity, compounded by lengthy liquidation events, likely contributed significantly to the crash.