I dont think it is limited to the ground effect altitude.
I found this on a website - it appears to be a run-away sort of thing, once it starts to happen you cannot lift out of it, unless you move forward out of the ring of airflow:
Quote:
According to the Federal Aviation Administration (FAA) Rotorcraft Flying Handbook, pages 11-5 to 11-7, Vortex Ring State (Settling with Power), "Vortex ring state describes an areodynamic condition where a helicopter may be in a vertical descent with up to maximum power applied, and little, or no cyclic authority. The term 'settling with power' comes from the fact that the helicopter keeps settling even though full engine power is applied. In a normal out-of-ground effect-hover, the helicopter is able to remain stationary by propelling a large mass of air down through the main rotor. Some of the air is recirculated near the tips of the blades, curling up from the bottom of the rotor system and rejoining the air entering the rotor from the top.
However, when the helicopter begins to descend vertically, it settles into its own downwash, which greatly enlarges the tip vortices. In this vortex ring state, most of the power developed by the engine is wasted in accelerating the air in a doughnut pattern around the rotor. In addition, the helicopter may descend at a rate that exceeds the normal downward induced-flow rate of the inner blade sections. As a result, the airflow of the inner blade sections is upward relative to the disc. This produces a secondary vortex ring in addition to the normal tip-vortices. The secondary vortex ring is generated about the point on the blade where the airfoil changes from up to down. The result is an unsteady turbulent flow over a large area of the disc. Rotor efficiency is lost even though power is still being supplied from the engine."
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