The nonlinear dynamics of three-dimensional instabilities of uniform gravity-wave trains evolving to crescent wave patterns is investigated numerically. A new mechanism of generation of oscillating horseshoe patterns is proposed and a detailed discussion on their occurrence in a water wave tank is given. It is suggested that these patterns are more likely to be observed naturally in water of finite depth. A critical wave steepness for the onset of three-dimensional wave breaking due to the nonlinear evolution of quintet resonant interactions corresponding to the phase-locked crescent-shaped structures (class II instability) is provided when the quartet resonant interaction (class I instability) is absent. The nonlinear coupling between quartet resonant interactions (class I instability) and quintet resonant interactions (class II instability) leading to three-dimensional breaking waves, as shown experimentally by Su & Green (1984, 1985), is numerically investigated.