We report on the observation of unstable two-wave mixing in a Yb-doped optical fiber amplifier induced by frequency modulation of a single-frequency laser. What is believed to be a reflection of the main signal experiences a gain much higher than that provided by the optical pumping and potentially limits power scaling under frequency modulation. We propose an explanation for the effect based on the dynamic population and refractive index gratings formed by the interference between the main signal and its slightly frequency-detuned reflection.