  We study vortex clustering in type II Superconductors. We demonstrate that
the ``second peak'' observed in magnetisation loops may be a dynamical effect
associated with a density driven instability of the vortex system. At the
microscopic level the instability shows up as the clustering of individual
vortices at (rare) preferential regions of the pinning potential. In the limit
of quasi-static ramping the instability is related to a phase transition in the
equilibrium vortex system.
