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The red mist was used during the battle of Shattrath City where the demon blood imbued Orcs assaulted the city.
The red mist has no described origins but it is presumed to have originated from the demons and preceded the orcs' assault on Shattrath City. It is not known if the orcs used the red mist during other attacks or not.
Note: The effects and related information can be found in the Unbroken short story.
When the red mist is inhaled initially it causes the victim to become disoriented and the eyes and lungs to burn excessively and causes the victim to throw up a large portion of blood.
The later effects of the red mist caused the the victim to be mutated and deformed both physically and mentally. The mist also disconnects the victim from the Light.