Our work is motivated by Bourque-Pevzner's simulation study of the effectiveness of the parsimony method in studying genome rearrangement, and leads to a surprising result about the random transposition walk in continuous time on the group of permutations on n elements starting from the identity. Let Dt be the minimum number of transpositions needed to go back to the identity element from the location at time t. Dt undergoes a phase transition: for 0<c≤1, the distance Dcn/2 cn/2, i.e., the distance increases linearly with time; for c>1, Dcn/2 u(c)n where u is an explicit function satisfying u(x)<x/2. Moreover we describe the fluctuations of Dcn/2 about its mean at each of the three stages (subcritical, critical and supercritical). The techniques used involve viewing the cycles in the random permutation as a coagulation-fragmentation process and relating the behavior to the Erdős-Rényi random graph model.