Knowledge Distillation Must Account for What It Loses

Knowledge distillation (KD) transfers capabilities from large language models (LLMs) to smaller students, yet it can fail unpredictably and also underpins model leakage risks. Our analysis revealed several distillation traps: tail noise, off-policy instability, and, most fundamentally, the teacher-student gap, that distort training signals. These traps manifest as overconfident hallucinations, self-correction collapse, and local decoding degradation, causing distillation to fail. Motivated by these findings, we propose a post-hoc calibration method that, to the best of our knowledge, for the first time enables control over a teacher's distillability via reinforcement fine-tuning (RFT). Our objective combines task utility, KL anchor, and across-tokenizer calibration reward. This makes distillability a practical safety lever for foundation models, connecting robust teacher-student transfer with deployment-aware model protection. Experiments across math, knowledge QA, and instruction-following tasks show that students distilled from distillable calibrated teachers outperform SFT and KD baselines, while undistillable calibrated teachers retain their task performance but cause distilled students to collapse, offering a practical knob for both better KD and model IP protection.

Knowledge distillation is usually framed as a choice of what to match in the teacher - its logits, hidden features, or sample relations - which presupposes that the teacher's representation has absolute coordinates to match. It does not: a pretrained representation is identifiable only up to an orthogonal-and-isotropic-scaling equivalence class, so a student should learn the teacher's equivalence class, not its features. The organizing fact is that capability is the teacher's output function, a class invariant that factors through the quotient by the class action, so an objective recovers capability exactly when it is defined there. This makes absolute feature matching ill-posed, and admissible supervision a matter of targeting class invariants (Gram structure, CKA, principal subspaces) or aligning coordinates first, unifying feature matching, relational distillation, alignment, and grafting in one geometric account. We validate our framework on Qwen2.5 and Llama-3.1. A restoration study recovers a corrupted model's representation (CKA ~ 0.99) but not its capability, and an ablation isolates the cause: output-function (logit) matching drives capability, while matching hidden representations aligns geometry without restoring function. Recovery is confined to the corpus-covered region, and a graft study confirms that boundary overlap predicts transplant success but is necessary, not sufficient.

On-policy distillation offers dense, per-token supervision for training reasoning models; however, it remains unclear under which conditions this signal is beneficial and under which it is detrimental. Which teacher model should be used, and in the case of self-distillation, which specific context should serve as the supervisory signal? Does the optimal choice vary from one token to the next? At present, addressing these questions typically requires costly training runs whose aggregate performance metrics obscure the dynamics at the level of individual tokens. We introduce a training-free diagnostic framework that operates at the highest resolution: per token, per question, and per teacher. We derive an ideal per-node gradient defined as the parameter update that maximally increases the student's probability of success. We then develop a scalable targeted-rollout algorithm to estimate this gradient efficiently, even for long chains of intermediate thoughts. The gradient alignment score, defined as the cosine similarity between this ideal gradient and any given distillation gradient, quantifies the extent to which a particular configuration approximates the ideal signal. Across a range of self-distillation settings and external teacher models, we observe that distillation guidance exhibits substantially higher alignment with the ideal on incorrect rollouts than on correct ones, where the student already performs well and the teacher's signal tends to become noisy. Furthermore, we find that the optimal distillation context depends jointly on the student model's capacity and the target task, and that no single universally effective configuration emerges. These findings motivate the use of per-task, per-token diagnostic analyses for distillation.