Martin leaped into the lead on the opening lap but was quickly reeled in and passed by poleman Marquez, who looked on course for a first Gresini Ducati win.
But on lap nine of 12 Marquez fell off at Turn 9, just seconds after third-fifth-placed Alex Marquez, Enea Bastianini and Brad Binder all slid off at Turn 5.
Maverick Vinales crashed at the same place on the following lap while running third, while several others all had front-end crashes through to the finish.
In all, 16 riders out of 25 made it to the chequered flag, but everyone from 12th down also suffered crashes at some stage.
Reigning champion Francesco Bagnaia was involved in a collision with Marco Bezzecchi and Binder at Turn 1 on lap three which took the factory Ducati rider out.
Through all the chaos, Tech3 rookie Pedro Acosta found himself in second, while Yamaha’s Fabio Quartararo rose from 23rd on the grid to complete the podium.
Martin now leads the championship by 29 points from Acosta, while Bagnaia is now 42 adrift.
Early rain threats came to nothing as the lights went out for the 12-lap Jerez sprint, with Binder jumping into the lead from fourth on the grid on his factory KTM.
Brad Binder, Red Bull KTM Factory Racing
Photo by: Gold and Goose / Motorsport Images
Martin slotted into second ahead of Marquez, while Bagnaia found himself mired in sixth.
At Turn 9 Martin took the lead away from Binder, while Aprilia’s Aleix Espargaro became the first crasher of a dramatic sprint at Turn 8.
Jack Miller slid off his KTM at the last corner at the end of the first lap, but remounted to finish 14th.
At the front, Marc Marquez overtook Binder at Turn 9 for second with a tough move, but the KTM rider scythed past again into the last corner on the third tour.
This move let Alex Marquez come through on the pair of them, while Binder ultimately lost the most.
Marc Marquez repassed his Gresini team-mate and brother Alex Marquez for second at Turn 1, while Binder reclaimed fourth as Bezzecchi threw his VR46 Ducati up the inside of Bagnaia.
Bezzecchi ran wide and forced Bagnaia to open the door to Binder, who came steaming up the inside but connected with the factory Ducati rider, sending him down. The incident was placed under investigation by the FIM stewards, but no further action was taken.
Through all this chaos, Martin had opened a 1.3s lead over Marc Marquez come the start of lap four – though the Gresini rider had closed the Pramac GP24 down by the…
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