Given $X = (0,1]$ a metric space with $\tilde{d}$ defined as $$\tilde{d}(x,y) = \bigl|\frac{1}{x} - \frac{1}{y}\bigr| \ \ \text{for} \ \ x,y \in X$$
I'm trying to prove that $\tilde{d}$ and $d$ the standard metric on $(0,1]$ are topologically equivalent, using the open sets criteria and would like to know if it's correct.
Proof: $U$ is open in $(X,\tilde{d}) \implies U$ is open in $(X,d)$
Let $x \in U$ and $\epsilon > 0$ such that $B_{\epsilon}(x,\tilde{d}) \subseteq U$
If $y \in B_{\epsilon}(x,\tilde{d})$ which means $ \tilde{d}(x,y) =\bigl|\frac{1}{x} - \frac{1}{y}\bigr| = \bigl|\frac{y-x}{xy}\bigr| = \frac{|x-y|}{|xy|} < \epsilon$ and that's equivalent to $d(x,y) = |x-y| < |xy|\epsilon$, then $y \in U$
Therefore, for any $x \in U$ we can find an epsilon $\tilde{\epsilon} = |xy|\epsilon$ such that: $y \in B_{|xy|\epsilon}(x, d) \implies y \in U$
$\Longleftarrow$
Similarly, If $y \in B_{\epsilon}(x,d)$, it follows that $d(x,y) = |x-y| < \epsilon$ which is equivalent to $\tilde{d}(x,y) =\bigl|\frac{1}{x} - \frac{1}{y}\bigr| < \frac{\epsilon}{|xy|}$
Therefore, for any $x \in U$ we can find an epsilon $\tilde{\epsilon} = \frac{\epsilon}{|xy|}$ such that: $y \in B_{\frac{\epsilon}{|xy|}}(x, \tilde{d}) \implies y \in U$
Your argument is not valid. You cannot make $\tilde {\epsilon}$ depend on $y$. Suppose $B_{\epsilon} (x,\tilde {d}) \subset U$ with $0<\epsilon <1$. Choose $ \tilde {\epsilon} >0$ such that $\tilde {\epsilon} < \min \{\frac x 2,\frac {\epsilon x^{2}}2\}$. (Note that $x >0$. This is crucial here). Then $|y-x| < \tilde {\epsilon}$ implies $|\frac 1 y -\frac 1 x|=\frac {|y-x|} {xy} <\epsilon$ because $\epsilon xy >\epsilon x(x-\tilde {\epsilon})=\epsilon x^{2}-\epsilon x{\tilde {\epsilon}} >2\tilde {\epsilon}-\epsilon x{\tilde {\epsilon}} >{\tilde {\epsilon}}$ (since $\epsilon x <1$). Hence $B_{\tilde {\epsilon}} (x,d) \subset B_{\epsilon} (x,\tilde {d}) \subset U$. I leave the other part to you.