The general stability properties of ion distributions with velocity sp
ace holes of the type expected in the Earth's central plasma sheet as
a consequence of chaotic ion acceleration is investigated. It is shown
that such distributions are unstable to electrostatic waves with wave
vectors located in a narrow angular region about the Sun-Earth line.
These waves can be generated in the magnetotail midplane even if the t
ransition layer in velocity space between the background plasma and an
empty hole region is of the order of the ion thermal velocity. Theref
ore these electrostatic waves would form a robust and persistent compo
nent of the electrostatic wave activity in the presence of the backgro
und ion hole distributions. The solution of the quasi-linear equation
shows that the saturation of the ion hole instability occurs because o
f velocity space trapping of the low energy background ions and result
s in a flattening of the reduced distribution function in the region o
f the original velocity space hole. The energy level of the excited wa
ves in the vicinity of the magnetotail field reversal region is obtain
ed as a function of the ion hole parameters.