We show that the "sputter patterning" topographical instability is determined by the effects of ion impact-induced prompt atomic redistribution and that erosion--the consensus predominant cause--is essentially irrelevant. We use grazing incidence small angle x-ray scattering to measure in situ the damping of noise or its amplification into patterns via the linear dispersion relation. A model based on the effects of impact-induced redistribution of those atoms that are not sputtered away explains both the observed ultrasmoothening at low angles from normal incidence and the instability at higher angles.