I've been having some trouble seeing where the solution for the above problem comes from. The given solution is for $z = r(\cos\theta + i\sin\theta)$ that $r^2< 2\cos2\theta$ and $r \neq 0$.
I'm not sure how to make any progress from the polar representation below, any hints or new directions would be great:
$|z^2 -1| = |r^2(\cos2\theta + i\sin2\theta)-1| < 1$
Note $|z^2 - 1| = |z-1||z+1|$. So your solution set is the interior of a Cassini oval with foci at $1$ and $-1$.