According to the Los Angeles Sheriff's Department, deputies took over after Gardena police officers initiated the chase.
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LASD units were chasing the suspect when he or she slammed into two vehicles, including one that was parked near the intersection of S Central Avenue and 1st Street.
Surveillance footage obtained by ABC7 from the Sushi Gala restaurant shows the moment people started running at the Japanese Village Plaza.
"I was out here selling my art on the sidewalk in Little Tokyo, I like this community a lot," said a witness. "I looked over and I heard the crash and then the car is like skidding towards me, so I jumped out of the way. I didn't get hit but my car got hit, but I didn't get hit so that's good."
One woman said she didn't know what was going on but saw people looking up at the helicopter overhead.
"Everyone just stormed inside so I ran in to duck for cover," said Seira Murakami, a server at a nearby restaurant. "Everybody in the restaurant just ran inside. They ran behind the kitchen just to find cover. We had no idea what was going on and then I just heard the boom of the car crash."
Two people were detained.
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The sheriff's department said no shots were fired at any time but they believed the suspects might've been armed. As of Saturday night, that hasn't been confirmed.
Murakami said deputies told people to lock their doors and stay inside.
"Honestly, my head was blank," she said. "I couldn't really think. All I saw was just people running so I just ran after, trying to make sure everyone safe ... there's nothing I could really do."
No injuries were reported.
The incident remains under investigation.