Analysis: Mantra and market makers inflated OM token liquidity by exploiting data aggregator verification vulnerabilities

On April 18, in the latest episode of The Chopping Block podcast discussion, Mantra and its associated market makers allegedly manipulated OM token liquidity metrics by exploiting a vulnerability in the data aggregator's self-reporting system. They misrepresented circulating supply and trading volumes to create the illusion of market activity. The Mantra team worked with market makers to circulate tokens between controlled addresses and exchanges to simulate trading volume, inflating data without significant natural participation.
According to on-chain observers, the supply of OM tokens is less than 1% truly liquid, but it appears to be the top 25 assets by market capitalization. The strategy exploits vulnerabilities in the verification process of CoinGecko and CoinMarketCap, which rely on project teams to self-report data, cross-check with exchange listing information and surface blockchain analysis. Those with ulterior motives can allocate tokens to market makers and plan seemingly natural trading activities to evade inspections, even without retail investors participating. When a major OM investor sold, artificial liquidity collapsed, causing the price to drop by 90% in 90 minutes. The event wiped billions of dollars off the market value, exposing the deep vulnerability of the asset's trading.