Set $M = \{ \, (x, y) : x^2 = y^2 \, \}$. If for every point $(a, c)$ in $M$, there exists a neighborhood $U$ containing $(a, c)$ and function $\phi(x, y)$ such that:
- $\phi(x, y) = 0$ on $M \cap U$;
- The Jacobian matrix associated with $\phi$ has rank $1$ on $U$. (In general, it does not have to be rank $1$. But here the only choice is $1$.)
Then, $M$ is a manifold. If the Jacobian matrix has ranks greater than $0$, then we have use $\phi$ to carry out the implicit function theorem, and construct a function such that $(x, y) = (x, f(x))$ on $M \cap U$. But I don't know how to go in reverse; what is the contradiction if $M$ is a manifold?
An educated guess says that $(0, 0)$ is our trouble spot. The function $\varphi(x, y) = x^2 - y^2$ equals $0$ on $M$. But the Jacobian matrix has zero rank at $(0, 0)$. So, we cannot use $\varphi$ to carry out the implicit function theorem...