The Wispy Terrain is the region of chasmata characterized by quasi-parallel fault systems, formed by extensional and shear stresses of the icy crust of Dione, a moon of Saturn. Besides the basic, satellite-scale geological mapping and very general definition of the phenomenon, only a few studies focus on the Wispy Terrain and its chasmata from the angle of detailed tectonic reconstruction, with others mainly targeting, e.g., the timing of its formation. This study provides a detailed geological and cryotectonic analysis in the surroundings of the Eurotas and Palatine Chasmata and proposes additional, until now, unidentified tectonic processes and a formation model. The relationship between fragmentary impact craters and tectonic features indicates other newly suspected tectonic movements, namely thrust, and splay and décollement fault systems. In contrast to the commonly expected and identified dilatational processes, such fault types show compression and are characteristic of subduction in a terrestrial environment. Theoretically, the appearance of such tectonic processes means that the already-known rift and the newly discovered subsumption (subduction-like) processes may appear together in the Wispy Terrain. The appearance of both features may suggest the presence of some of the components (phases) of a Wilson cycle analog cryotectonic cycle (or possibly cycles) in icy planetary bodies like Dione.