We present a new reorientation technique, “hyper-reoriented walking,” which greatly reduces the amount of physical space required in virtual reality (VR) applications asking participants to walk along a grid-like path (such as the most common layout in department stores). In hyper-reoriented walking, users walk along the gridlines with a virtual speed of twice the speed of real walking and perform turns at cross-points on the grid with half the speed of the rotation speed in the physical space. The impact of the technique on participants’ sense of orientation and increase in simulator sickness was investigated experimentally involving 19 participants walking in a labyrinth of infinite size that included straight corridors and 90° T-junctions at the end of the corridors. Walking accuracy was assessed by tracking the position of the head mounted display, and cyber-sickness was recorded with the simulator sickness questionnaire and with open questions. Walking straight forward was found to closely match the ideal path, which is the grid line, but slight errors occasionally occurred when participants turned at the T-junctions. A correction algorithm was therefore necessary to bring users back to the gridline. For VR experiments in a grid-like labyrinth with paths of 5 m in length, the technique reduces required size of the tracked physical walking area to 3 m × 2 m.