Understanding particle motion in narrow channels can guide progress in numerous applications, from filtration to vascular transport. Thermal or active fluctuations of fluid-filled channel walls can slow down or increase the dispersion of tracer particles via entropic trapping in the wall bulges or hydrodynamic flows induced by wall fluctuations, respectively. Previous studies concentrated primarily on the case of a single Brownian tracer. Here, we address what happens when there is a large ensemble of interacting Brownian tracers – a common situation in applications. Introducing repulsive interactions between tracer particles, while ignoring the presence of a background fluid, leads to an effective flow field. This flow field enhances tracer dispersion, a phenomenon reminiscent of that seen for single tracers in incompressible background fluid. We characterise the dispersion by the long-time diffusion coefficient of tracers numerically and analytically with a mean-field density functional analysis. We find a surprising effect where an increased particle density enhances the diffusion coefficient, challenging the notion that crowding effects tend to reduce diffusion. Here, inter-particle interactions push particles closer to the fluctuating channel walls. Interactions between the fluctuating wall and the now-nearby particles then drive particle mixing. Our mechanism is sufficiently general that we expect it to apply to various systems. In addition, our perturbation theory quantifies dispersion in generic advection–diffusion systems.