Let B(H) denote the algebra of operators on a complex Hilbert space H, and let U denote the class of operators A ∈ B(H) which satisfy the absolute value condition |A| 2 ≤ |A 2 |. It is proved that if A ∈ U is a contraction, then either A has a nontrivial invariant subspace or A is a proper contraction and the nonnegative operator D = |A 2 |−|A| 2 is strongly stable. A Putnam-Fuglede type commutativity theorem is proved for contractions A in U , and it is shown that if normal subspaces of A ∈ U are reducing, then every compact operator in the intersection of the weak closure of the range of the derivation δ A (X) = AX − XA with the commutant of A * is quasinilpotent.