I just expand $$(x_2 - x_1)^2 - (y_2 - y_1)^2 = (x _{2}^{2} - y _{2}^{2}) + (x _{1}^{2} - y _{1}^{2}) - 2x_1x_2 + 2y_1y_2 \\ = -2 -2x_1x_2 + 2y_1y_2,$$ and I'm stuck here.
Intuitively, the graph of points $(x,y)$ satisfying $x^2 - y^2 = -1$ supports the conclusion. Here is the graph

I'm assuming that $x_2 > x_1 \geq 0$. Deal with the negative $x_i$ cases in a similar manner.
We are given that $ y_i = \sqrt{ 1 + x_i^2 }$.
Then, we WTS
$$ | x_2 - x_1 | > \left| \sqrt{ 1 + x_2^2 } - \sqrt{ 1 + x_1 ^2 } \right|. $$
Approach 1:
WLOG $x_2 > x_1$.
$0 < \sqrt{ 1 + x_2 ^2 } - \sqrt{ 1 + x_1^2 } = \frac{ x_2 ^2 - x_1 ^2 } { \sqrt{ 1 + x_2^2 } + \sqrt{ 1 + x_1 ^ 2 } } < \frac{ x_2^2 - x_1 ^2 } { x_2 + x_1 } = x_2 - x_1 $.
Approach 2:
WLOG, $x_2 > x_1$.
Proof by contradiction. Suppose not, then
$x_2 - x_1 \leq \sqrt{1 +x_2^2 } - \sqrt{ 1 + x_1^2}$.
$x_2 - x_1 (\sqrt{1 +x_2^2 } + \sqrt{ 1 + x_1^2}) \leq x_2 ^2 - x_1 ^2 = (x_2 - x_1) ( x_2 + x_1) $
$\Rightarrow \sqrt{1 +x_2^2 } + \sqrt{ 1 + x_1^2} \leq x_2 + x_1$
Adding these 2 inequalities, we get
$ \sqrt{ 1 + x_1^2 } \leq x_1 $, which is a contradiction.
Approach 3:
Hint: Show (E.g. by differention) that the gradient of $ \sqrt{1 + x^2}$ has absolute value strictly less than 1.