Surface nanostructures etch without chemicals; owing to this, their development is a crucial technical process. Surface nanohillocks may be created by irradiating yttrium iron garnet (YIG) with 30-MeV C60 cluster ions. The nanohillock creation mechanism is disputed. In this study, we propose that the formation mechanism is a plasma collective effect of charged particles that depends on localized rogue waves. Rogue waves will explain YIG surface nanohillock creation using a traditional hydrodynamic plasma model. Analytically solving hydrodynamic ion fluid equations and Maxwellian electron distributions yields a non-linear Schrödinger equation. Solving the latter gives us plausible rogue wave domains. Rogue waves concentrate charged ions from the surroundings into a small, confined zone, generating surface nanohillocks. The relevance of different plasma parameters is highlighted in the rogue wave profile.