Leverage Trading on OM Coin: Positions Opened After the Crash Were Also Liquidated! - Coin Bulletin

Koinbulteni · 2025-04-14T15:05:32+00:00

After the **Mantra (OM)** crash, investors turned back to high-leverage trading but these positions were quickly eliminated. Data from **Glassnode** showed investors aggressively re-entering the market after significant losses, only to be short-lived as the market did not allow it. The rapid decrease in **Open Interest (OI)** from $261 million to $121 million within 10 minutes on April 13 illustrated a widespread liquidation wave. The simultaneous rise in the Estimated Leverage Ratio (ELR) while OI declined indicated a significant reduction in positions in both spot and derivative markets.

Koinbulteni

2025-04-14 15:05:32

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After the price of Mantra (OM) collapsed, investors turned to high-leverage trades again, but these positions were quickly wiped out from the market.

The crash of Mantra (OM) that occurred on April 13 in the cryptocurrency market was not limited to sudden sell-offs; the high-risk leveraged trades that followed the decline turned into a larger wave of liquidations. Data reported by the chain analysis platform Glassnode revealed that investors aggressively repositioned themselves despite significant losses, but this move was short-lived.

The estimated leverage ratio used in OM’s futures market (Estimated Leverage Ratio – ELR) continued to rise after the price crash, peaking at 0.37 as of 08:00 on April 14. This increase indicates that new high-leverage positions entered the market immediately after the sell-off. However, these positions could not hold for long, and the ratio fell sharply. This movement shows that investors have returned to the market by taking risks again, but the market did not allow this.

As of April 13 at 18:10, when the price drop began, the value of OM’s Open Interest (OI) or open positions in the futures market decreased from 261 million dollars to 121 million dollars in just 10 minutes. By 19:40, this figure had fallen to 47 million dollars. During the same period, the price of OM also dropped to 0.45 dollars. These data revealed that a large-scale liquidation wave was occurring in the market.

The increase in the ELR ratio while OI is decreasing indicates that spot assets on exchanges are also being reduced or withdrawn. Generally, the leverage ratio moves in tandem with OI, but here a contrary trend has emerged. This also pointed to a significant position reduction process in both the spot and derivatives markets.

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