The mechanism for creating "dynamical gravastar" black hole mimickers also explains formation of "little red dots"

We argue that a high pressure phase transition of relativistic matter to a state with negative energy density, which leads to the formation of horizonless, globally unitary black hole mimickers, also gives rise to the appearance of ``little red dots’'. The energy source for the dots is the release of latent energy from the phase transition, and their excess redness is a result of this release taking place in a central region of exponentially small positive $g_{00}$, and hence very high gravitational redshift.