I think this approach is wrong. Reasons
1) What is the reason behind assuming |x| > |y| please ? This ssumption will only
remove a scenario in which |y| can be greater than |x|. How can that be accounted for in this method please ?
2) How would a student know to make this (incorrect) under the 2 minute time pressure that GMAT Quant imposes ?
Forget conventional ways of solving math questions. In DS, Variable approach is the easiest and quickest way to find the answer without actually solving the problem. Remember equal number of variables and independent equations ensures a solution.
Is |x - y| > |x| - |y|?
(1) y < x
(2) xy < 0
If we modify the original condition,
if |x|>=|y|,
|x-y|>|x|-|y|>=0, so we can square both sides, which gives us (|x-y|)^2>(|x|-|y|)^2, and (x-y)^2>(|x|-|y|)^2
This becomes x^2+y^2-2xy>x^2+y^2-2|xy|, and if we simplify the inequality, -2xy>-2|xy|, and we ultimately want to know whether xy<0. This makes condition 2 sufficient.
if |x|<|y|, then |x|-|y|<0,
so |x-y|>|x|-|y| always work. Hence we do not need to deal with this, so the answer becomes (B).
Once we modify the original condition and the question according to the variable approach method 1, we can solve approximately 30% of DS questions.