Suppose that $X$ and $Y$ are $n\times n$ complex matrices such that $2Y^2=XY-YX$ and the rank of $X-Y$ is $1$. Prove that $Y^3=YXY$.
I have shown that, trace $Y^n=0$ for all $n=2,3,4,\ldots$. Also we can write $X-Y=xy^t$. From this how to proceed. Please give some idea.
This is true over any field of characteristic zero. Since $X-Y$ has rank one, $E:=X-Y=uv^T$ for some nonzero vectors $u$ and $v$. Therefore $2Y^2=XY-YX=EY-YE$ and \begin{align} 2Y^3=Y(EY-YE)&=(EY-YE)Y,\tag{1}\\ 2YEY&=Y^2E+EY^2.\tag{2} \end{align} Since the commutator $EY-YE$ commutes with $Y$ in $(1)$, by Jacobson's lemma it must be nilpotent. Therefore $2Y^2$ is nilpotent and in turn, $Y$ is nilpotent.
Pick two matrices $U$ and $V$ such that $\ker(U)=\operatorname{span}\{u\}$ and $\ker(V)=\operatorname{span}\{v\}$. From $(2)$, we obtain $UYEYV^T=0$, i.e. $(UYu)(VY^Tv)^T=0$. Hence $u$ is an eigenvector or $v$ is an eigenvector of $Y^T$. But then we must have $Yu=0$ or $Y^Tv=0$, because $Y$ is nilpotent. Thus $YE=0$ or $EY=0$. Consequently $Y(X-Y)Y=YEY=0$, i.e., $Y^3=YXY$.
Actually, since $YEY=0$ and at least one of $YE$ or $EY$ is zero, $(1)$ implies that $Y^3=0$, as observed in loup blanc's answer.