The chain of events that led to a man ploughing a car through dozens of pedestrians on a crowded Melbourne street on Friday afternoon began almost 12 hours earlier.

The 26-year-old alleged driver stabbed his brother in their southeast Melbourne home at about 2am on Friday.

Neighbours said they heard the pair arguing and a female voice saying ‘if you don’t stop, I’m going to call the police’, but both were gone when officers arrived.

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The horrific chain of events that led to a car (pictured) deliberately ploughing through dozens of pedestrians on a crowded city street began almost 12 hours earlier

The suspect allegedly stabbed his brother at his home (1), took a hostage before letting her out on the Bolte Bridge (2) and led police on a wild car chase towards the city (3)

On Friday morning, a man in a maroon Holden Commodore stopped near the scene of the Windsor stabbing and tried to interrupt a reporter as she did a live cross to the studio.

The camera caught him leaning out of the window with a baseball cap in his hand, waving his arm and apparently yelling something before driving off, spinning the car's wheels on the wet pavement.

Later that morning he led police on a wild car chase through Melbourne with a female hostage in the passenger seat, who police said was 'not connected' to him.

This is the moment a man driving a maroon Holden appeared in the background of a Today show broadcast about a stabbing in the suburb of Windsor, Melbourne

At least 25 people were left wounded by a 26-year-old driver who ploughed into shoppers before being shot by police and arrested

The woman escaped or was let out of the car on the Bolte Bridge near Docklands just west of the Melbourne CBD.

Police gave up their pursuit soon after as the car was moving erratically and it was feared bystanders could be injured.

Helicopters kept track of his movements as officers hoped to find another opportunity to stop him, but instead watched in horror as he drove into the city.

The rampage finally came to an end when he mounted the kerb at 555 Bourke Street and came to a stop after police shot him the arm

Police arrested a man wearing nothing but red underwear following the incident in Melbourne

He first was seen doing doughnuts near Flinders Street Station before speeding up Swanson Street and turning right onto the Bourke Street mall.

The car then drove into crowds of shoppers on the busy shopping strip before, injuring at least 25 people and killing three including a baby.

The rampage finally came to an end when he mounted the kerb at 555 Bourke Street and came to a stop after police shot him the arm.

He was dragged out of the car and stripped down to just a red pair of underwear and arrested face down on the footpath.

A pram was dragged 100 metres through the middle of Melbourne's city centre by the car involved in today's horrific rampage, witnesses say

Horrified pedestrians have been filmed running for their lives from the car that smashed into at least 25 people in Melbourne

Chief Commissioner Craig Ashton said the suspect had a history of family violence and he was arrested on the weekend for assaulting his mother's partner.

'They mostly relate to assault-related activity, assaults of family members and members of family by this individual,' he said at a press conference on Friday evening.

'There is a family violence history there. The offences do relate to that.

'He has come to our attention on many occasions in the past. We have mental health and drug-related issues in the background of this particular person.'