Violation of smooth observable macroscopic realism in a harmonic oscillator

We study the emergence of macrorealism in a harmonic oscillator subject to consecutive measurements of a squeezed action. We demonstrate a breakdown of dynamical realism in a wide parameter range that is maximized in a scaling limit of extreme squeezing, where it is based on measurements of smooth observables, implying that macroscopic realism is not valid in the harmonic oscillator. We propose an indirect experimental test of these predictions with entangled photons by demonstrating that local realism in a composite system implies dynamical realism in a subsystem.