An array of ultracold atoms in an optical lattice (Mott insulator) excited to a state where single electron wave-functions spatially overlap would represent a new and ideal platform to simulate exotic electronic many-body phenomena in the condensed phase. However, this highly excited non-equilibrium system is expected to be so short-lived that it has eluded observation so far. Here, we demonstrate the first step toward its realization by exciting high-lying electronic (Rydberg) states of the atomic Mott insulator with a coherent ultrashort laser pulse. Beyond a threshold principal quantum number where Rydberg orbitals of neighboring lattice sites overlap with each other, the atoms efficiently undergo spontaneous Penning ionization resulting in a drastic change of ion-counting statistics, sharp increase of avalanche ionization and the formation of an ultracold plasma. These observations signal the actual creation of exotic electronic states with overlapping wave functions, which is further confirmed by a significant difference in ionization dynamics between a Bose-Einstein condensate and a Mott insulator.
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