This is a US Navy Spruance-class destroyer sinking in mere minutes after being hit by the latest version of a Mk 48: a heavyweight torpedo which, as you can see in this video, can wipe a whole ship out of the water in a single strike. This version, developed by the US and Australia, has new sonar enhancements that make it an "effective weapon in shallow water and in a countermeasure environment." The footage was taken to demonstrate its capabilities during the Rim of the Pacific 2008 naval exercise. Obviously, with frightening success (at least for someone who is looking to go to NYC in a freighter ship soon.) [Ares and BBC]
Gee, you'd think they could have used a better video editor. I'd like to see more than a few seconds of explosion and then suddenly cutting to it halfway under water.
Seriously, this test took lots of planning... with helicopter circling the battleship and dozens of people involved. Why is the video released to the public with a huge chunk cut out?