The transformation of two-dimensional graphene oxide (GO) nanosheets into carbon nanotubes was achieved by sonicating GO in 70% nitric acid. Through the use of mass spectrometry to track the evolution of molecular fragments during the acid ultrasonication, it was observed that GO can be readily decomposed into polyaromatic hydrocarbons (PAHs). The cavitation-induced condensation of these PAHs results in their molecular reconstruction to form folded carbon nanostructures. UV-emitting, water-soluble carbon nanoparticles as well as carbon nanotubes that exhibit magnetic properties were fabricated under catalyst-free conditions.