In order to include the monocular areas from the left and the right eye in the cyclopean view, the visual system displaces the occluded elements which would result in a horizontal elongation of the shape but does not occur thanks to a correction mechanism which preserves the shape. We hypothesised that this mechanism causes Kanizsa's a modal shrinkage illusion (the apparent elongation of a partially occluded square) when it is incorrectly applied by the visual system to a two-dimensional stimulus. Four experiments tested this hypothesis: (i) one-eyed observers were less susceptible to the illusion than people with normal binocular vision because, for them, the correction for shape is unnecessary; (ii) the illusion was stronger with binocular than with monocular vision since binocularity induces the visual system to correct for the shape distortion; (iii) the illusion diminished when the stimulus was rotated 90° given that displacement and compression are not required for vertical occlusion; (iv) the magnitude of the illusion was a function of the width of the occluder because, as previous research has shown, the edges of a partially occluded square are less displaced the farther they are from the edges of the occluder. The data from the four experiments support our hypothesis even though no condition was able to eliminate the illusion; other possible causes are discussed.