We present an analysis of the hydrodynamic stability of a cold slab bo
unded by two accretion shocks. Previous numerical work (Hunter et al.
1986; Stevens, Blondin, & Pollack 1992) has shown that when the Mach n
umber of the shock is large, the slab is unstable. Here we show that t
o linear order both the bending and breathing modes of such a slab are
stable, with a real frequency of c(s)k, where k is the transverse wav
enumber. However, nonlinear effects will tend to soften the restoring
forces for bending modes, and when the slab displacemcnt is comparable
to its thickness this gives rise to a nonlinear instability. The grow
th rate of the instability, above this threshold but for small bending
angles, is approximately c(s)k(keta)1/2, where eta is the slab displa
cement. When the bending angle is large (i.e., keta of order unity) th
e slab will contain a local vorticity comparable to c(s)/L, where L is
the slab thickness. We discuss the relationship between this work and
previous studies of shock instabilities, including the implications o
f this work for gravitational instabilities of slabs. Finally, we exam
ine the cases of a decelerating slab bounded by a single shock and a s
tationary slab bounded on one side by thermal pressure. The latter cas
e is stable, but appears to be a special case. The former case is subj
ect to a nonlinear overstability driven by deceleration effects. We co
nclude that shock-bounded slabs with a high-density compression ratio
generically produce substructure with a strong local shear, a bulk vel
ocity dispersion like the sound speed in the cold layer, and a charact
eristic scale comparable to the slab thickness. We discuss the implica
tions of this work for cosmology and the interstellar medium.