Between 2000 June and September an exceptional variability phase occurred in the peculiar F-type hypergiant Rho Cas, when the V-brightness dimmed by at least a full magnitude. The star recovered from this deep minimum by 2001 April. It is the third outburst of Rho Cas on record in the last century. We observe TiO absorption bands in high-resolution optical and near-IR spectra obtained with the Utrecht Echelle Spectrograph during the summer of 2000. TiO formation in the outer atmosphere occurred before the deep brightness minimum.Atmospheric models reveal that the effective temperature decreases by at least 3000 K, and the TiO shell is driven supersonically with Mdot =~5.4 10^-2 Msun/yr. Strong episodic mass loss and TiO have also been observed during the outbursts of 1945-47 and 1985-86. An analysis of the exceptional outburst spectra of 2000-01 is provided, by comparing with high-resolution optical spectra of the early M-type supergiants Mu Cep (Ia) and Betelgeuse (Iab). During the outburst, central emission appears above the local continuum level in the split Na D lines. The outburst spectra indicate the formation of a low- temperature, optically thick circumstellar gas shell of 3 10^-2 Msun during ~200 d, caused by dynamic instability of the upper atmosphere of this pulsating massive supergiant near the Eddington luminosity limit. We present an equation that correctly predicts the outburst time-scale, whereby the shell ejection is driven by the release of hydrogen recombination energy. We observe that the mass-loss rate during the outburst is of the same order of magnitude as has been proposed for the outbursts of Eta Carinae. The research results in this paper are described in further detail in Lobel et al. (2003). A spectral movie sequence of the outburst is available at http://cfa-www.harvard.edu/~alobel/