Suge Knight -- Arrested for Murder in Hit and Run (UPDATE)

4:15 AM PT -- Law enforcement sources tell TMZ ... after interviewing Suge Knight, cops have formally arrested him on murder charges, and his bail has been set at $2 million.

We're told one of the critical factors is that witnesses claim Suge threw his car in reverse once, and then a second time ... and they believe he intended to hit one of the people with whom he was fighting.

3:00 AM PT -- Suge has turned himself in for questioning and is at the station now being interviewed. One of Suge's problems ... witnesses tell us one of the 3 men who were struck by Suge's vehicle was in the altercation with him before Suge ran him over ... which could be evidence it was intentional.

9:30 PM PT -- Cops found Suge's truck abandoned in a parking lot in the Westwood section of L.A.

8:15 PM PT -- Cops just had a press conference ... and say there were 2 fights, the second resulting in the fatality. They said the first fight went down on the movie set -- and the second at a nearby burger joint. Cops said witnesses claim the car backed up and ran over the victim twice before fleeing.

6:00 PM PT -- Law enforcement sources tell TMZ ... the Sheriff's Dept. has issued a bulletin to all Southern California law enforcement saying "be on the lookout" for Suge Knight ... that he is wanted for questioning for 187 -- murder. They also say he should be considered armed and dangerous.

Suge Knight got into a fight on the set of a film project in Compton, ran over a man who later died, and then fled the scene.

Multiple witnesses tell us a commercial shoot for a movie -- involving Ice Cube and Dr. Dre -- was going down when Suge pulled up in his car. We're told security told Suge to leave and that's when trouble began.

A fight broke out between Suge and 2 men. Suge got back into his car, took the wheel and threw the vehicle in reverse ... and ran over a man who suffered fatal injuries.

It's unclear at this point if the victim was connected to the movie. A source close to Cube tells us production had wrapped when the fight went down ... and he and Dre were not on set.

Sources connected with Suge tell TMZ ... the 2 men who fought Suge were the instigators. Our sources say Suge was scared because he's in frail health -- in addition to being shot 6 times last summer, he recently almost died from a blood clot.

The victim is Terry Carter, who we're told is a friend of Suge's who arrived with him at the scene -- he works at a local tow truck company in Compton -- and witnesses say he's "an OG in the neighborhood."

Our sources say Carter was in the process of walking to the passenger door of Suge's vehicle, but happened to be in the rear when Suge gunned it.

Two other men were also hit ... including Cle "Bone" Sloan -- who's appeared in "Training Day" and "End of Watch" -- and suffered non-life threatening injuries. Both men are in the hospital.