We report on observations of enhanced plasma turbulence and hot particle distributions in the plasmasphere boundary layer formed by reconnection-injected hot plasma jets entering the plasmasphere. The data confirm that the electron pressure peak is formed just outward of the plasmapause in the premidnight sector. Free energy for plasma wave excitation comes from diamagnetic ion currents near the inner edge of the boundary layer due to the ion pressure gradient, electron diamagnetic currents in the entry layer near the electron plasma sheet boundary, and anisotropic (sometimes ring-like) ion distributions revealed inside, and further inward of, the inner boundary. We also show that nonlinear parametric coupling between lower oblique resonance and fast magnetosonic waves significantly contributes to the VLF whistler wave spectrum in the plasmasphere boundary layer. These emissions represent a distinctive subset of substorm/storm-related VLF activity in the region devoid of substorm injected tens keV electrons and could be responsible for the alteration of the outer radiation belt boundary during (sub)storms.