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Subarachnoid hemorrhage is bleeding in the space between your brain and the surrounding membrane (subarachnoid space). Bleeding usually results from the rupture of an abnormal bulge in a blood vessel in your brain (brain aneurysm).
Sometimes an abnormal tangle of blood vessels in your brain (arteriovenous malformation), trauma or other events cause bleeding. A subarachnoid hemorrhage may lead to permanent brain damage or death if not treated.
Source: http://www.mayoclinic.com