We perform a comprehensive investigation of the coupling between a Rydberg-dressed atomic gas and an ultra-cold plasma. Using simultaneous time-resolved measurements of both neutral atoms and ions, we show that plasma formation occurs via a Coulomb anti-blockade mechanism, in which background ions DC Stark shift nearby atoms into resonance at specific distances. The result is a highly correlated growth of the Rydberg population that shares some similarities with that previously observed for van der Waals interactions. We show that a rate equation model that couples the laser-driven Rydberg gas to the ultra-cold plasma via a Coulomb anti-blockade mechanism accurately reproduces both the plasma formation and its subsequent decay. Using long-lived high angular momentum states as a probe, we also find evidence of a crossover from Coulomb anti-blockade to Coulomb blockade at high density. As well as shedding light on loss mechanisms in Rydberg-dressed gases, our results open new ways to create low-entropy states in ultra-cold plasmas.
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