A one-dimensional linear hybrid gyrokinetic-magnetohydrodynamic δf particle in cell simulation code is developed to study the detailed mechanisms of energetic particle drift-bounce resonant destabilization of Alfv¿n modes in the ring-current region of the magnetosphere. The model plasma is composed of a cold (10--100eV) component which provides inertia plus a tenuous energetic (~10 keV) ring-current component which provides both resonant destabilization and compressional stabilization of MHD modes. Full kinetic effects such as finite Larmor radii and particle magnetic bounce and precessional drift motions are retained nonperturbatively. A simple finite ¿ dipolar equilibrium model is assumed (¿ is the ratio between plasma and magnetic pressures). Simulations show excellent agreement with earlier perturbative analyses. Results show that when the energetic ion thermal velocity is super-Alfv¿nic, the ions destabilize both odd and even parity shear Alfv¿n MHD modes via the drift-bounce resonances. The growth rates of the resulting modes scale linearly with plasma ¿. The most unstable of these modes are found to be drift-bounce resonance destabilized modes with odd parity, with wave numbers such that k⊥ρ ≈ 0.5 at the equator (ρ is the energetic ion Larmor radius). The destabilization typically occurs at a critical wave number k⊥ρ ≈ 0.3. When the wave number is close to this critical value and the plasma ¿ is close to the ideal MHD critical value, the mode frequency is determined by the energetic particle dynamics, similar to the energetic particle modes (EPMs) observed in laboratory fusion plasma experiments. When the energetic particles have Alfv¿nic or sub-Alfv¿nic thermal velocity, they contribute to damping of the MHD modes via the bounce resonance.