diff --git a/compiler/packages/babel-plugin-react-forget/src/Validation/ValidateHooksUsage.ts b/compiler/packages/babel-plugin-react-forget/src/Validation/ValidateHooksUsage.ts
index 25dc827ba8..63da00e38f 100644
--- a/compiler/packages/babel-plugin-react-forget/src/Validation/ValidateHooksUsage.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/Validation/ValidateHooksUsage.ts
@@ -5,6 +5,7 @@
  * LICENSE file in the root directory of this source tree.
  */
 
+import * as t from "@babel/types";
 import {
   CompilerError,
   CompilerErrorDetail,
@@ -89,21 +90,35 @@ function joinKinds(a: Kind, b: Kind): Kind {
 export function validateHooksUsage(fn: HIRFunction): void {
   const unconditionalBlocks = computeUnconditionalBlocks(fn);
 
-  const errorsByPlace = new Map<SourceLocation, CompilerErrorDetail>();
+  const errors = new CompilerError();
+  const errorsByPlace = new Map<t.SourceLocation, CompilerErrorDetail>();
+
+  function recordError(
+    loc: SourceLocation,
+    errorDetail: CompilerErrorDetail
+  ): void {
+    if (typeof loc === "symbol") {
+      errors.pushErrorDetail(errorDetail);
+    } else {
+      errorsByPlace.set(loc, errorDetail);
+    }
+  }
+
   function recordConditionalHookError(place: Place): void {
     // Once a particular hook has a conditional call error, don't report any further issues for this hook
     setKind(place, Kind.Error);
 
     const reason =
       "Hooks must always be called in a consistent order, and may not be called conditionally. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning)";
-    const previousError = errorsByPlace.get(place.loc);
+    const previousError =
+      typeof place.loc !== "symbol" ? errorsByPlace.get(place.loc) : undefined;
 
     /*
      * In some circumstances such as optional calls, we may first encounter a "hook may not be referenced as normal values" error.
      * If that same place is also used as a conditional call, upgrade the error to a conditonal hook error
      */
     if (previousError === undefined || previousError.reason !== reason) {
-      errorsByPlace.set(
+      recordError(
         place.loc,
         new CompilerErrorDetail({
           description: null,
@@ -117,8 +132,10 @@ export function validateHooksUsage(fn: HIRFunction): void {
     }
   }
   function recordInvalidHookUsageError(place: Place): void {
-    if (!errorsByPlace.has(place.loc)) {
-      errorsByPlace.set(
+    const previousError =
+      typeof place.loc !== "symbol" ? errorsByPlace.get(place.loc) : undefined;
+    if (previousError === undefined) {
+      recordError(
         place.loc,
         new CompilerErrorDetail({
           description: null,
@@ -348,6 +365,11 @@ export function validateHooksUsage(fn: HIRFunction): void {
           }
           break;
         }
+        case "ObjectMethod":
+        case "FunctionExpression": {
+          visitFunctionExpression(errors, instr.value.loweredFunc.func);
+          break;
+        }
         default: {
           /*
            * Else check usages of operands, but do *not* flow properties
@@ -369,7 +391,6 @@ export function validateHooksUsage(fn: HIRFunction): void {
     }
   }
 
-  const errors = new CompilerError();
   for (const [, error] of errorsByPlace) {
     errors.push(error);
   }
@@ -377,3 +398,37 @@ export function validateHooksUsage(fn: HIRFunction): void {
     throw errors;
   }
 }
+
+function visitFunctionExpression(errors: CompilerError, fn: HIRFunction): void {
+  for (const [, block] of fn.body.blocks) {
+    for (const instr of block.instructions) {
+      switch (instr.value.kind) {
+        case "FunctionExpression": {
+          visitFunctionExpression(errors, instr.value.loweredFunc.func);
+          break;
+        }
+        case "MethodCall":
+        case "CallExpression": {
+          const callee =
+            instr.value.kind === "CallExpression"
+              ? instr.value.callee
+              : instr.value.property;
+          const hookKind = getHookKind(fn.env, callee.identifier);
+          if (hookKind != null) {
+            errors.pushErrorDetail(
+              new CompilerErrorDetail({
+                severity: ErrorSeverity.InvalidReact,
+                reason:
+                  "Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning)",
+                loc: callee.loc,
+                description: `Cannot call ${hookKind} within a function component`,
+                suggestions: null,
+              })
+            );
+          }
+          break;
+        }
+      }
+    }
+  }
+}
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-3d692676194b.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-3d692676194b.expect.md
new file mode 100644
index 0000000000..0e0c4ba795
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-3d692676194b.expect.md
@@ -0,0 +1,32 @@
+
+## Input
+
+```javascript
+// @skip
+// Unsupported input
+
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+const ComponentWithHookInsideCallback = React.forwardRef((props, ref) => {
+  useEffect(() => {
+    useHookInsideCallback();
+  });
+  return <button {...props} ref={ref} />;
+});
+
+```
+
+
+## Error
+
+```
+   6 | const ComponentWithHookInsideCallback = React.forwardRef((props, ref) => {
+   7 |   useEffect(() => {
+>  8 |     useHookInsideCallback();
+     |     ^^^^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (8:8)
+   9 |   });
+  10 |   return <button {...props} ref={ref} />;
+  11 | });
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-3d692676194b.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-3d692676194b.js
similarity index 100%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-3d692676194b.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-3d692676194b.js
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-8503ca76d6f8.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-8503ca76d6f8.expect.md
new file mode 100644
index 0000000000..c3032d0959
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-8503ca76d6f8.expect.md
@@ -0,0 +1,32 @@
+
+## Input
+
+```javascript
+// @skip
+// Unsupported input
+
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+const ComponentWithHookInsideCallback = React.memo((props) => {
+  useEffect(() => {
+    useHookInsideCallback();
+  });
+  return <button {...props} />;
+});
+
+```
+
+
+## Error
+
+```
+   6 | const ComponentWithHookInsideCallback = React.memo((props) => {
+   7 |   useEffect(() => {
+>  8 |     useHookInsideCallback();
+     |     ^^^^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (8:8)
+   9 |   });
+  10 |   return <button {...props} />;
+  11 | });
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-8503ca76d6f8.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-8503ca76d6f8.js
similarity index 100%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-8503ca76d6f8.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.bail.rules-of-hooks-8503ca76d6f8.js
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md
new file mode 100644
index 0000000000..56f0053476
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md
@@ -0,0 +1,30 @@
+
+## Input
+
+```javascript
+// Invalid because it's dangerous and might not warn otherwise.
+// This *must* be invalid.
+function createHook() {
+  return function useHookWithConditionalHook() {
+    if (cond) {
+      useConditionalHook();
+    }
+  };
+}
+
+```
+
+
+## Error
+
+```
+  4 |   return function useHookWithConditionalHook() {
+  5 |     if (cond) {
+> 6 |       useConditionalHook();
+    |       ^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (6:6)
+  7 |     }
+  8 |   };
+  9 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js
similarity index 83%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js
index 2426fc5a96..5b99572971 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0a1dbff27ba0.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's dangerous and might not warn otherwise.
 // This *must* be invalid.
 function createHook() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md
new file mode 100644
index 0000000000..a12255a03e
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md
@@ -0,0 +1,32 @@
+
+## Input
+
+```javascript
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+function createComponent() {
+  return function ComponentWithHookInsideCallback() {
+    useEffect(() => {
+      useHookInsideCallback();
+    });
+  };
+}
+
+```
+
+
+## Error
+
+```
+  4 |   return function ComponentWithHookInsideCallback() {
+  5 |     useEffect(() => {
+> 6 |       useHookInsideCallback();
+    |       ^^^^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (6:6)
+
+[ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call useEffect within a function component (5:5)
+  7 |     });
+  8 |   };
+  9 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.js
similarity index 86%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.js
index 6155cf7451..24a8f427a1 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-0de1224ce64b.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's a common misunderstanding.
 // We *could* make it valid but the runtime error could be confusing.
 function createComponent() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.expect.md
new file mode 100644
index 0000000000..1e1b797192
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.expect.md
@@ -0,0 +1,30 @@
+
+## Input
+
+```javascript
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+function createComponent() {
+  return function ComponentWithHookInsideCallback() {
+    function handleClick() {
+      useState();
+    }
+  };
+}
+
+```
+
+
+## Error
+
+```
+  4 |   return function ComponentWithHookInsideCallback() {
+  5 |     function handleClick() {
+> 6 |       useState();
+    |       ^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call useState within a function component (6:6)
+  7 |     }
+  8 |   };
+  9 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.js
similarity index 85%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.js
index e7989ae1a7..af1be61e59 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-449a37146a83.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's a common misunderstanding.
 // We *could* make it valid but the runtime error could be confusing.
 function createComponent() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md
new file mode 100644
index 0000000000..bb439a7e54
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md
@@ -0,0 +1,28 @@
+
+## Input
+
+```javascript
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+function ComponentWithHookInsideCallback() {
+  function handleClick() {
+    useState();
+  }
+}
+
+```
+
+
+## Error
+
+```
+  3 | function ComponentWithHookInsideCallback() {
+  4 |   function handleClick() {
+> 5 |     useState();
+    |     ^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call useState within a function component (5:5)
+  6 |   }
+  7 | }
+  8 |
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.js
similarity index 83%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.js
index 4a46242aa4..e0882b9126 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-76a74b4666e9.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's a common misunderstanding.
 // We *could* make it valid but the runtime error could be confusing.
 function ComponentWithHookInsideCallback() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.expect.md
new file mode 100644
index 0000000000..967a3be31a
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.expect.md
@@ -0,0 +1,30 @@
+
+## Input
+
+```javascript
+// Invalid because it's dangerous and might not warn otherwise.
+// This *must* be invalid.
+function createComponent() {
+  return function ComponentWithConditionalHook() {
+    if (cond) {
+      useConditionalHook();
+    }
+  };
+}
+
+```
+
+
+## Error
+
+```
+  4 |   return function ComponentWithConditionalHook() {
+  5 |     if (cond) {
+> 6 |       useConditionalHook();
+    |       ^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (6:6)
+  7 |     }
+  8 |   };
+  9 | }
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.js
similarity index 84%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.js
index ab731ed953..724407faf8 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d842d36db450.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's dangerous and might not warn otherwise.
 // This *must* be invalid.
 function createComponent() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md
new file mode 100644
index 0000000000..54fd23b58b
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md
@@ -0,0 +1,28 @@
+
+## Input
+
+```javascript
+// Invalid because it's a common misunderstanding.
+// We *could* make it valid but the runtime error could be confusing.
+function ComponentWithHookInsideCallback() {
+  useEffect(() => {
+    useHookInsideCallback();
+  });
+}
+
+```
+
+
+## Error
+
+```
+  3 | function ComponentWithHookInsideCallback() {
+  4 |   useEffect(() => {
+> 5 |     useHookInsideCallback();
+    |     ^^^^^^^^^^^^^^^^^^^^^ [ReactForget] InvalidReact: Hooks must be called at the top level in the body of a function component or custom hook, and may not be called within function expressions. See the Rules of Hooks (https://react.dev/warnings/invalid-hook-call-warning). Cannot call Custom within a function component (5:5)
+  6 |   });
+  7 | }
+  8 |
+```
+          
+      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.js
similarity index 83%
rename from compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.js
rename to compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.js
index dfa7f92bcc..17ecd3a3d3 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/error.invalid.invalid-rules-of-hooks-d952b82c2597.js
@@ -1,6 +1,3 @@
-// @skip
-// Passed but should have failed
-
 // Invalid because it's a common misunderstanding.
 // We *could* make it valid but the runtime error could be confusing.
 function ComponentWithHookInsideCallback() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.expect.md
index ce1acbb45a..cb549e2520 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.expect.md
@@ -2,6 +2,7 @@
 ## Input
 
 ```javascript
+// @compilationMode(infer)
 // Regression test for some internal code.
 // This shows how the "callback rule" is more relaxed,
 // and doesn't kick in unless we're confident we're in
@@ -19,6 +20,7 @@ function makeListener(instance) {
 ## Code
 
 ```javascript
+// @compilationMode(infer)
 // Regression test for some internal code.
 // This shows how the "callback rule" is more relaxed,
 // and doesn't kick in unless we're confident we're in
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.js
index 79f18b9844..8be1a9435e 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-0592bd574811.js
@@ -1,3 +1,4 @@
+// @compilationMode(infer)
 // Regression test for some internal code.
 // This shows how the "callback rule" is more relaxed,
 // and doesn't kick in unless we're confident we're in
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.expect.md
index ca7131796f..9a6ca0d249 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.expect.md
@@ -2,6 +2,7 @@
 ## Input
 
 ```javascript
+// @compilationMode(infer)
 // Valid because hooks can call hooks.
 function createHook() {
   return function useHook() {
@@ -15,20 +16,13 @@ function createHook() {
 ## Code
 
 ```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // Valid because hooks can call hooks.
+// @compilationMode(infer)
+// Valid because hooks can call hooks.
 function createHook() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function useHook() {
-      useHook1();
-      useHook2();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
+  return function useHook() {
+    useHook1();
+    useHook2();
+  };
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.js
index e2c9e72adf..f27e6bcf5f 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-2bec02ac982b.js
@@ -1,3 +1,4 @@
+// @compilationMode(infer)
 // Valid because hooks can call hooks.
 function createHook() {
   return function useHook() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.expect.md
index acc96d1ed4..ea8869bacd 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.expect.md
@@ -2,6 +2,7 @@
 ## Input
 
 ```javascript
+// @compilationMode(infer)
 // Valid because hooks can use hooks.
 function createHook() {
   return function useHookWithHook() {
@@ -14,19 +15,12 @@ function createHook() {
 ## Code
 
 ```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // Valid because hooks can use hooks.
+// @compilationMode(infer)
+// Valid because hooks can use hooks.
 function createHook() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function useHookWithHook() {
-      useHook();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
+  return function useHookWithHook() {
+    useHook();
+  };
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.js
index 405e1e77ea..ce6244346f 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-33a6e23edac1.js
@@ -1,3 +1,4 @@
+// @compilationMode(infer)
 // Valid because hooks can use hooks.
 function createHook() {
   return function useHookWithHook() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.expect.md
index e4d4d1c66d..dfb4fa6df7 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.expect.md
@@ -2,6 +2,7 @@
 ## Input
 
 ```javascript
+// @compilationMode(infer)
 // Valid because components can use hooks.
 function createComponentWithHook() {
   return function ComponentWithHook() {
@@ -14,19 +15,12 @@ function createComponentWithHook() {
 ## Code
 
 ```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // Valid because components can use hooks.
+// @compilationMode(infer)
+// Valid because components can use hooks.
 function createComponentWithHook() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function ComponentWithHook() {
-      useHook();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
+  return function ComponentWithHook() {
+    useHook();
+  };
 }
 
 ```
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.js b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.js
index 9b5bcde4be..2aced0739c 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.js
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/rules-of-hooks-8f1c2c3f71c9.js
@@ -1,3 +1,4 @@
+// @compilationMode(infer)
 // Valid because components can use hooks.
 function createComponentWithHook() {
   return function ComponentWithHook() {
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-3d692676194b.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-3d692676194b.expect.md
deleted file mode 100644
index 52517cb31d..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-3d692676194b.expect.md
+++ /dev/null
@@ -1,52 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Unsupported input
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-const ComponentWithHookInsideCallback = React.forwardRef((props, ref) => {
-  useEffect(() => {
-    useHookInsideCallback();
-  });
-  return <button {...props} ref={ref} />;
-});
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Unsupported input
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-const ComponentWithHookInsideCallback = React.forwardRef((props, ref) => {
-  const $ = useMemoCache(4);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      useHookInsideCallback();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  useEffect(t0);
-  let t1;
-  if ($[1] !== props || $[2] !== ref) {
-    t1 = <button {...props} ref={ref} />;
-    $[1] = props;
-    $[2] = ref;
-    $[3] = t1;
-  } else {
-    t1 = $[3];
-  }
-  return t1;
-});
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-8503ca76d6f8.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-8503ca76d6f8.expect.md
deleted file mode 100644
index 7ef06b9267..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.bail.rules-of-hooks-8503ca76d6f8.expect.md
+++ /dev/null
@@ -1,51 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Unsupported input
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-const ComponentWithHookInsideCallback = React.memo((props) => {
-  useEffect(() => {
-    useHookInsideCallback();
-  });
-  return <button {...props} />;
-});
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Unsupported input
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-const ComponentWithHookInsideCallback = React.memo((props) => {
-  const $ = useMemoCache(3);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      useHookInsideCallback();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  useEffect(t0);
-  let t1;
-  if ($[1] !== props) {
-    t1 = <button {...props} />;
-    $[1] = props;
-    $[2] = t1;
-  } else {
-    t1 = $[2];
-  }
-  return t1;
-});
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md
deleted file mode 100644
index 1d1a58e602..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0a1dbff27ba0.expect.md
+++ /dev/null
@@ -1,45 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's dangerous and might not warn otherwise.
-// This *must* be invalid.
-function createHook() {
-  return function useHookWithConditionalHook() {
-    if (cond) {
-      useConditionalHook();
-    }
-  };
-}
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Passed but should have failed
-
-// Invalid because it's dangerous and might not warn otherwise.
-// This *must* be invalid.
-function createHook() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function useHookWithConditionalHook() {
-      if (cond) {
-        useConditionalHook();
-      }
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
-}
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md
deleted file mode 100644
index 0f8c4eef1b..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-0de1224ce64b.expect.md
+++ /dev/null
@@ -1,45 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function createComponent() {
-  return function ComponentWithHookInsideCallback() {
-    useEffect(() => {
-      useHookInsideCallback();
-    });
-  };
-}
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function createComponent() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function ComponentWithHookInsideCallback() {
-      useEffect(() => {
-        useHookInsideCallback();
-      });
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
-}
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.expect.md
deleted file mode 100644
index 1cb7604edf..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-449a37146a83.expect.md
+++ /dev/null
@@ -1,41 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function createComponent() {
-  return function ComponentWithHookInsideCallback() {
-    function handleClick() {
-      useState();
-    }
-  };
-}
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function createComponent() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function ComponentWithHookInsideCallback() {};
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
-}
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md
deleted file mode 100644
index 54cd30c3cc..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-76a74b4666e9.expect.md
+++ /dev/null
@@ -1,29 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function ComponentWithHookInsideCallback() {
-  function handleClick() {
-    useState();
-  }
-}
-
-```
-
-## Code
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function ComponentWithHookInsideCallback() {}
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.expect.md
deleted file mode 100644
index d597564eb3..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d842d36db450.expect.md
+++ /dev/null
@@ -1,45 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's dangerous and might not warn otherwise.
-// This *must* be invalid.
-function createComponent() {
-  return function ComponentWithConditionalHook() {
-    if (cond) {
-      useConditionalHook();
-    }
-  };
-}
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Passed but should have failed
-
-// Invalid because it's dangerous and might not warn otherwise.
-// This *must* be invalid.
-function createComponent() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = function ComponentWithConditionalHook() {
-      if (cond) {
-        useConditionalHook();
-      }
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  return t0;
-}
-
-```
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md
deleted file mode 100644
index 215bfbed28..0000000000
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/rules-of-hooks/todo.invalid.invalid-rules-of-hooks-d952b82c2597.expect.md
+++ /dev/null
@@ -1,41 +0,0 @@
-
-## Input
-
-```javascript
-// @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function ComponentWithHookInsideCallback() {
-  useEffect(() => {
-    useHookInsideCallback();
-  });
-}
-
-```
-
-## Code
-
-```javascript
-import { unstable_useMemoCache as useMemoCache } from "react"; // @skip
-// Passed but should have failed
-
-// Invalid because it's a common misunderstanding.
-// We *could* make it valid but the runtime error could be confusing.
-function ComponentWithHookInsideCallback() {
-  const $ = useMemoCache(1);
-  let t0;
-  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = () => {
-      useHookInsideCallback();
-    };
-    $[0] = t0;
-  } else {
-    t0 = $[0];
-  }
-  useEffect(t0);
-}
-
-```
-      
\ No newline at end of file