A man pulled out an imitation firearm and waved it around at people in Sapley Square in Huntingdon.
He also seen pointing it at someone before he was disarmed and left the area.
The incident occurred on Friday, April 5 at around 7pm and one arrest has now been made.
A 33-year-old man from Huntingdon has been arrested on suspicion of possessing an imitation firearm with intent to cause fear of violence.
He remains in custody at Thorpe Wood police station in Peterborough.
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