A stolen grey Skoda hit speeds up to 180km/h while chasing a Toyota sedan along Derrimut Road at Hoppers Crossing in Melbourne's southwest in the early hours of Friday morning.
The car with six to seven youths inside attempted a manoeuvre to spin out the Toyota, lost control, hit the rear of a Ford sedan and Ford Ranger and rolled.
A 15-year-old boy was ejected and died from his injuries at the scene, while a teenage girl who was a front-seat passenger suffered broken legs.
A third occupant was arrested at scene but several others ran, including one who was caught near Werribee Plaza.
A 14-year-old later presented with family to Werribee's Mercy Hospital and was taken into custody.
The five captured or dead teens were aged between 14 and 16 and not on bail, Detective Inspector Craig McEvoy said.
He said one to two occupants of the car, stolen about 24 hours earlier during an aggravated burglary in Maidstone, remained on the run.
"To run from the scene whilst you've got a mate who is lying on the ground dying, it's a coward's act," Mr McEvoy told reporters.
The road remained closed between Hogans Road and Heaths Road on Friday afternoon as Major Collision Investigation Unit detectives forensically examined the smashed-up vehicles.
Before the crash, the Toyota's occupants felt intimidated and threatened by the teens and were followed as they fled the Tarneit Central shopping centre.
No ''innocent party'' died or sustained serious injuries, police said.
Det Insp McEvoy said it was "amazing" only one of the teens died in the crash, given the "unfathomable and completely excessive" speeds the car hit during the chase.
"We could have had five, six, seven fatals here," he said.
A sword was found outside the stolen car, along with "lots" of alcohol throughout it and the scene.
Victorian minister Nick Staikos said his heart sank when he learned of the crash and alleged crime spree.
"I know Victorians have had enough of it and it can have tragic consequences."
Laws came into effect in Victoria on March 6 allowing children as young as 14 to be tried in adult courts for more types of violent crime, including carjackings, aggravated burglaries and machete attacks.
Youth crime has been in the spotlight following the fatal stabbing of off-duty security guard Aidan Becker at Mernda train station, in Melbourne's northeast, on March 6 after he rushed to a 14-year-old boy's aid.
A group of teenagers allegedly pursued Mr Becker and attacked the 22-year-old as he escorted the boy from the train station.
Four male teens have been charged with murder and armed robbery.