Chromothripsis is a type of complex chromosomal rearrangements that was originally observed in cancer cells. In this event, one or several chromosomes of the cell shatter into pieces, and then randomly reassembled to create derivative chromosomes. This type of event generates a great number of chromosomal rearrangements, DNA copy number aberrations and fusion genes. It will convert a normal cell to a cancer cell in relatively short-time period. This is different from the classical theory of cancer initiation, in which gene mutations are accumulated step-by-step. Thus, chromothripsis may reveal a new paradigm in cancer initiation. The molecular mechanisms of this phenomenon are not fully understood, and some controversy exists in terms of chromothripsis detection criteria. This review highlights recent advances made in the chromothripsis identification criteria and mechanisms. We also discussed the relationship between chromothripsis and cancer initiation and progression. It provides a reference for further chromothripsis research.