It is possible
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The only thing that is unblockable is power attack (Triangle + Circle).
Other than this, you can block every grapple attack.
To reverse the grapple attack, you have to first guess the grapple move used by your opponent.
For example:-
If your opponent uses (up + Triangle = head), then you have to use (up + Square).
If your opponent uses (right/left + Triangle = body), then you have to use (right/left +Square) similarly for the Down attack for the leg.
And if you are down, then use only square.
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