Sparse domination and the bi-parameter Hilbert transform

We study domination of the bi-parameter Hilbert transform by $(1,1)$-type sparse forms over axis-parallel rectangles, and show that such domination fails even for smooth test functions compactly supported in $(0,1{)}^2$. Our proof combines an explicit construction of two finite lattices based on the arithmetic of $\mathbb{Z}[\sqrt{2}]$ with a randomization argument.