MANTRA’s OM token fell sharply to a record low after MANTRA Chain halted block production following a software exploit, adding fresh pressure to a project that has already faced significant challenges. The network suspended transactions and several related operations while developers investigated the incident and worked on a software fix.
OM dropped about 18.5%, falling from roughly $0.00506 to $0.004126 at around 11:10 p.m. UTC on Thursday, according to market data cited in reports. The token later recovered to about $0.0044, although it remained approximately 5.50% lower over the 24-hour period.
Trading activity also increased substantially as market participants reacted to the disruption. The token’s 24-hour trading volume rose by nearly 600% to about $24 million, indicating a significant increase in activity during the selloff.
Network stops producing blocks
The MANTRA Chain recorded its most recent block at approximately 11:13 p.m. UTC, only a few minutes after OM reached its new low. The project subsequently confirmed that it had halted the blockchain and frozen transactions and network endpoints as its team investigated the incident.
Deposits and withdrawals on affected cryptocurrency exchanges were also temporarily suspended. The measures were intended to limit further activity while developers and network operators assessed the security issue.
MANTRA said the incident involved a vulnerability in software provided through an upstream dependency. The affected software was developed outside the MANTRA network but was used as part of the blockchain’s broader technical infrastructure. The project said developers had identified the vulnerability and were preparing a patched software release before attempting to restore normal network operations.
Validators, which play a central role in confirming transactions and maintaining blockchain operations, remained offline while the fix was being prepared and tested. Restarting the network is expected to require coordination among validator operators to ensure that the blockchain can resume block production safely.
Investigation continues as OM faces uncertainty
MANTRA is also tracking the movement of funds and coordinating with cryptocurrency exchanges as the investigation continues. However, the project has not disclosed the specific software affected, the precise method used to exploit the vulnerability or whether any funds were stolen.
The team has indicated that its assessment remains incomplete and that the full impact of the incident has yet to be established. The disruption currently extends to public blockchain endpoints, validators, bridge functions and MANTRA-managed links used to interact with other networks.
The connection between the exploit and OM’s sudden price decline has also not been confirmed. The timing has attracted attention because the token reached its record low only minutes before block production stopped, while trading volume increased sharply.
Security incidents involving blockchain networks can lead to rapid repricing as traders reassess operational, technical and financial risks. In MANTRA’s case, however, the direct cause of the price movement remains unconfirmed.
We're aware of an incident affecting MANTRA Chain and have halted the chain as a precaution while we investigate. All endpoints and transactions are currently frozen.
This means deposits and withdrawals to/from MANTRA Chain are temporarily affected. If you're unsure how this…
— MANTRA | The EVM L1 for RWAs (@MANTRA_Chain) August 21, 2026
Another setback for MANTRA
The incident comes after a difficult period for the project. MANTRA’s earlier OM token experienced a collapse of more than 90% in April 2025, eliminating more than $5 billion in market value and placing additional scrutiny on the project.
MANTRA also entered a new phase earlier this year after Inveniam Capital Partners, which had invested $20 million in the project, announced plans to acquire it. The transaction was expected to close during the third quarter.
The latest exploit represents another major test for MANTRA as it seeks to develop blockchain infrastructure aimed at supporting tokenized traditional financial assets.
For OM holders, immediate priorities include determining the extent of the vulnerability, identifying any potential financial losses and restoring network operations without introducing additional risks. The timing of the restart will depend on the successful testing of the patch and coordination among validators.
Until MANTRA provides greater clarity on the affected software, potential losses and the timetable for restarting the blockchain, uncertainty surrounding OM is likely to remain elevated. The project’s handling of the incident and its ability to restore confidence will be closely watched by traders, token holders and participants in its broader blockchain ecosystem.