Nodal topological superconductors display zero-energy Majorana flat bands at generic edges. The flatness of these edge bands, which is protected by time-reversal and translation symmetry, gives rise to an extensive ground-state degeneracy. Therefore, even arbitrarily weak interactions lead to an instability of the flat-band edge states towards time-reversal and translation-symmetry-broken phases, which lift the ground-state degeneracy. We examine the instabilities of the flat-band edge states of d_{xy}-wave superconductors by performing a mean-field analysis in the Majorana basis of the edge states. The leading instabilities are Majorana mass terms, which correspond to coherent superpositions of particle-particle and particle-hole channels in the fermionic language. We find that attractive interactions induce three different mass terms. One is a coherent superposition of imaginary s-wave pairing and current order, and another combines a charge-density-wave and finite-momentum singlet pairing. Repulsive interactions, on the other hand, lead to ferromagnetism together with spin-triplet pairing at the edge. Our quantum Monte Carlo simulations confirm these findings and demonstrate that these instabilities occur even in the presence of strong quantum fluctuations. We discuss the implications of our results for experiments on cuprate high-temperature superconductors.