Let $U$ be a $n\times n$ complex matrix satisfying:
$$ UU^*UU^*=I $$
Does it follow that $UU^*=I$?
Let me have a go at it:
$$ UU^*UU^*=(UU^*)^2=I\implies UU^*=\pm \sqrt{I} $$
Now the square root of $I$ is the set of all matrices $A^2=I$.
Does this "group" have any interesting properties, notably in physics?
By the given condition, both $UU^\ast$ and $I$ are positive semidefinite square roots of $I$. Since each PSD matrix has a unique PSD square root, we have $UU^\ast=I$, i.e., $U$ is simply a unitary matrix.