 Solution

The interior of the diamond is $B=\{(x_1,x_2):|x_1|+|x_2|<1\}$. Its Minkowski functional, or the uniqueness argument already proved, gives the L1 norm:The final unheaded set $C$ cannot be an open unit ball of a norm, because every norm ball is convex by homogeneity and the triangle inequality. Both $p=(9/10,0)$ and $q=(0,9/10)$ lie in $C$: their squared-distance expression is $101/100>1$. Their midpoint has that expressionso $(p+q)/2\notin C$. Thus $\boxed{\text{no norm has }C\text{ as its open unit ball}}$. The strict inequalities in the definition are respected by this explicit counterexample.