The equation y^2 = x^2 leads to |y| = |x|, which implies that y can be either equal to x or -x. This is derived from the fact that the absolute value equation |y| = |x| encompasses both positive and negative scenarios for y in relation to x. The discussion clarifies that while y could be expressed as |x| or -|x|, the solutions y = x and y = -x are the only valid interpretations when considering the square root. Furthermore, the factorization of y^2 - x^2 = 0 reinforces this conclusion by showing that y must equal x or -x. Thus, the relationship between y and x is defined by their equality or opposite signs.