Hybrid Inflation models lead to a spike in the density power spectrum at small scales, compared to the CMB. I will describe a new method for treating perturbations in these models, which avoids treating the fluctuations of the ``waterfall" field as if they were quantum perturbations about a classical trajectory. In this method only the waterfall field is quantized, while being treated as a free quantum field with a time-dependent m^2, which evolves from positive values to tachyonic values. An extension to the case of multiple waterfall fields will be presented, where the leading order results take a particularly simple form. Finally I will discuss the possibility of the perturbations to act as seeds of black holes, potentially supermassive ones.