Doesn't look like a flight control malfunction. After a snap, you can lose rudder, but in that case, there's no way he could have pulled out of it.
As I said, looks like he's trying a 45º descending departure after the snap, but he enters a spin which becomes flat in no time because of the power setting. When it becomes clear he can't fly it out, he cuts power and tries to save the situation, which he almost does.
As for the height, in CIVA championship rules, he can go as low as 300 feet if he's an unlimited pilot. In displays, depends on the country, but as Golfer said, you can get a zero-feet waiver or an Ace Card in the US. In Germany, I believe there's no such system, but I'm not positive.
In any case, from personal experience, I wouldn't go with a snap in a downline with the Pitts that close to the ground. Too tricky. A Sukhoi or an Extra, that's a whole different story.
Daniel