Yes, there are many groups where every element satisfies $Y * Y = e$. The simplest one is $\mathbb{Z}/2\mathbb{Z}$, the group of integers modulo 2 (under addition). These groups have interesting properties. For example you don't have to assume that the group is abelian; if a group is such that $Y * Y = e$ for all $Y$, it's automatically abelian.