CAMs (Content Addressable Memories) are functional memories which have functions such as word-parallel equivalence search, bilateral 1-bit data shifting between consecutive words, and word-parallel writing. Since CAMs can be integrated because of their regular structure, massively parallel CAM functions can be executed. Taking advantage of CAMs, Ishiura and Yajima have proposed a parallel fault simulation algorithm using a CAM. This algorithm, however, requires a large amount of CAM storage to simulate large-scale circuits. In this paper, we propose a new massively parallel fault simulation algorithm requiring less CAM storage, and compare it with Ishiura and Yajima's algorithm. Experimental results of the algorithm on CHARGE --the CAM-based hardware engine developed in our laboratory--are also reported.