Okay, I think I'm understanding what you're saying. I have never played XCOM 2012, so wasn't 100% sure about squadsight. The thing is, in UFO Defense, "vision" or "sight" doesn't necessarily work realistically. The aliens have memory (the technical term is
"intelligence" and different races and ranks have a different memory length) where if they spot your soldier, they know your soldier's location (aka "see" you) for the next X turns (where X is dependent on the race/rank of the alien).
So if an alien spots you, and then you go hide behind a wall or go through another door, in UFO Defense, the alien still "sees" you (or remembers your location) even though they don't have LOS on you because you go behind that wall or through that door. In that sense, UFO does use
figurative "squadsight" for psionics because only one alien needs to know your location for any alien to launch a psionic attack.
But you are right, no, in UFO there doesn't actually need to be an alien who currently
literally sees you to use Psi. They just need to have seen you and still remember where you went.
Hopefully that made sense.