Here's what Instagram developers said on their web post:
"There is a known issue with the Samsung Galaxy Y
that causes images to appear black on the filters screen and when uploaded.
We are currently investigating this issue."
I just realy hope that this problem would be fixed. For now, I am stuck with using Pick by Naver. It got really cool editing features, from simple effects to very cute and fascinating stamps and frames. Go check it out too. It's in Japanese by the way.