When capacitors are shorted, sparks can occur due to the high currents they supply, which can create an arc if there is a small gap between the terminals. This phenomenon is similar to how spark plugs function, where the current flow can lead to localized heating and ionization of air, forming plasma. The discussion highlights that even low voltages can produce sparks if the electric field is strong enough, particularly in small gaps or with surface imperfections. The presence of materials with lower breakdown potentials can also increase the likelihood of sparking. Overall, the mechanisms behind capacitor sparking involve a combination of high current, electric field strength, and physical contact dynamics.