The behavior of substorms as sudden transitions of the magnetosphere is studied using the Bargatze et al. [1985> data set of the solar wind induced electric field vBs and the auroral electrojet index AL. The data set is divided into three subsets representing different levels of activity, and they are studied using the singular spectrum analysis. The points representing the evolution of the magnetosphere in the subspace of the eigenvectors corresponding to the three largest eigenvalues can be approximated by two-dimensional manifolds with a relative deviation of 10--20%. For the first two subsets corresponding to small and medium activity levels the manifolds have a pleated structure typical of the cusp catastrophe. The dynamics of the magnetosphere near these pleated structures resembles the hysteresis phenomenon typical of first-order phase transitions. The reconstructed manifold is similar to the temperature-pressure-density diagrams of equilibrium phase transitions. The singular spectra of vBs, AL, and combined data have the power law dependence typical of second-order phase transitions and self-organized criticality. The magnetosphere thus exhibits the signatures of both self-organization and self-organized criticality. It is concluded that the magnetospheric substorm is neither a pure catastrophe of the low-dimensional system nor a random set of avalanches of different scales described by the simple sandpile models. The substorms behave like nonequilibrium phase transitions, with features of both first- and second-order phase transitions. ¿ 2000 American Geophysical Union