Despite its fundamental importance for a broad range of applications, little is understood about the behaviour of metals during the initial phase of shock compression. Here, we present molecular dynamics (MD) simulations of shock-wave propagation through a metal allowing a detailed analysis of the dynamics of high strain-rate plasticity. Previous MD simulations have not seen the evolution of the strain from one- to three-dimensional compression that is observed in diffraction experiments. Our large-scale MD simulations of up to 352 million atoms resolve this important discrepancy through a detailed understanding of dislocation flow at high strain rates. The stress relaxes to an approximately hydrostatic state and the dislocation velocity drops to nearly zero. The dislocation velocity drop leads to a steady state with no further relaxation of the lattice, as revealed by simulated X-ray diffraction.