It must be a hyperbola, because it states that the difference of distances from the foci 1 and -1 is constant (equal to 4). Be careful, squaring tends to introduce additional solutions if it removes the signs.
EDIT:
Sorry, I wrote too quickly without looking at the position of the foci. The definition with difference of distances between foci implies a hyperbola, but the right side is incompatible! A hyperbola always passes between the foci, and in this case, there's no space for that (because the distance between foci is 2, which is less than 4). This is why there's no solutions at all!
All the additional solutions (the "ellipse") come as extra false solutions that are the artifact of squaring. Each squaring folds negative and positive parts and may create false matching of LHS and RHS.