Moon illusion

1. It is said that moon illusion is psychological perception, not
physical i.e it got nothing to do with atmospheric refraction.
2. The horizone full moon is at farther distance compared to overhead
moon. This variation in distance is physical.

So as moon illusion is psychological, it should work if earth itself
is removed. Now just observer(you) in space. Imagine one moon at
distance of 390,000 km straight before your eyes(horizone moon) and
second moon at distance of 384,000 km above (overhead moon).

As moon illusion is psychological, 'horizone moon' should look larger
than 'overhead moon'.

On same logic, any distant object in space should look larger than
closer object.

Please point out any mistake.

Thanks!