During magnetospheric substorms, satellites embedded in the plasma sheet often detect transient dropouts of plasma and energetic particle fluxes, a phenomemon generally interpreted as indicating the exit of the satellite into the magnetospheric lobe due to a plasma sheet thinning. In order to determine the large-scale dynamics of the near-earth plasma sheet during substorms, three satellite years of ISEE 1 and 2 energetic particle flux data (1.5 and 6 keV), corresponding to 461 particle flux dropouts, have been analyzed. The principal results show that flux dropouts can be observed anywhere in the nightside plasma sheet, independent of the satellite's geocentric distance (for R>12RE), magnetic local time (except near the magnetospheric flanks) and estimated distance to the neutral sheet. Furthermore, flux dropouts can be observed for any combination of the AE index value and the satellite's distance to the neutral sheet, which shows that the plasma sheet is dynamic even during weak magnetospheric disturbances. Substorms during which the satellites, though situated in the plasma sheet, did not detect any flux dropout, have also been examined, and it is found that the plasma sheet thickness can locally remain unaffected by substorm development for AE index values up to at least 1000 nT. The predictions of the two major plasma sheet thinning models, i.e., the near-tail X-type magnetic neutral line formation model and the MHD rarefaction wave propagation model, are compared to the experimental results, and it is concluded that neither model can account for all of the observations; plasma sheet dynamics are more complex. Phenomenologically, this study suggests that multiple pinching of the plasma sheet and/or large-amplitude three-dimensional plasma sheet oscillations are important in plasma sheet dynamics.