Going at near orbital speeds at altitudes lower than 1km triggers a collision

[BobKermanIndustries]

Actual Behaviour:
Moving horizontally at near orbital speeds at altitudes lower than 1 km most triggers a collision most of the time, sending the spacecraft moving at a similar speed but in a different direction.

Expected Behaviour:
Spacecraft continues moving horizontally until it actually hits the ground.

[Katniss218]

Can't reproduce on my machine. Moving at 10 km/s just fine until I actually hit the ground