Spectators gasped and then sat in stunned silence as Karapetyan's arm bent out of shape and the weightlifter reeled in pain on Wednesday, reports Xinhua.
Doctors rushed him to the venue medical facility and then on to hospital where he remained on Wednesday night before returning to the Olympic Village on Thursday.
Karapetyan is reported to be feeling well and it is expected that the full extent of his arm damage will only be known following further medical examination, likely to be conducted in Yerevan, Armenia, after the Olympic Games.
Armenian women's 75kg lifter Sona Poghosyan, competing in Friday's group B event, said Karapetyan's presence back with the team is providing two-way strength.
"Everything is OK with him," she said. "He has some bandages on his arm, but he is getting treatment and everything is OK.
"He is inspiring us being back with the team and we are trying to support him so he can prepare even better for the next Olympic Games."
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