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The goal is to make right mesh (with orange outline) to look exactly straight like on the left side. But these horizontal loopcuts are completely destroying Hook setup. As you can see falloff is set to Linear and it is still has curvature.
Left side mesh has all vertices asigned to hook except top two. Right side - all of them.
This setup you can easily build using armature deformation, but not Hook. But if you want to use hooks, try vertex group setting in hook modificator:
I draw vertex group using weight gradient:
When add weight group into modificator settings:
