The First Drop of Ink: Nonlinear Impact of Misleading Information in Long-Context Reasoning

A standard claim in the literature on retrieval-augmented and memory-augmented language models is that shorter context is better when the relevant information is preserved. We test this claim by running every sample of two long-context benchmarks -- BABILong and GraphWalks (BFS) -- at four context-retention fractions (100%, 75%, 50%, 25%) under two truncation protocols. The first is the naive protocol implicitly used in much prior work: drop content from the middle of the prompt. The second is distractor-aware: identify the task-relevant content for each sample and drop only the rest. We evaluate three sizes of the Claude family (Haiku 4.5, Sonnet 4.6, Opus 4.7) and, to test cross-provider generality, GPT-5.5 from a different provider; we apply the same protocol to two further benchmarks (MRCR v2, Oolong). Under naive truncation, score collapses monotonically (paired Wilcoxon, Holm-corrected p_adj < 0.05 in all eight BABILong and GraphWalks cells). Under the distractor-aware protocol -- which preserves the signal by construction -- performance is preserved or improves: the two smaller Claude models show statistically significant gains on BABILong, while the larger models (Opus 4.7 and GPT-5.5) sit at their full-context ceiling. The naive collapse and its distractor-aware recovery replicate on GPT-5.5, ruling out a single-provider artifact. The mechanism is direct: under the naive protocol the answer-bearing content survives in fewer than 1% of samples at 25% retention; under the distractor-aware protocol it is preserved by construction. The naive protocol is therefore not a measurement of context-window effects; it is a measurement of how often middle-removal happens to spare the answer. We conclude that future studies of context-length effects must specify how they distinguish signal from distractor, or they are at best ambiguous between two opposite hypotheses.

As Large Language Models (LLMs) increasingly utilize massive context windows as working memory for autonomous tasks, their reliability fluctuates significantly depending on how information is distributed in real-world corpora. We investigate how fact placement, corpus-level distributions, and anti-hallucination ("Don't Make It Up") prompts influence model behavior by introducing a model-agnostic extended needle-in-a-haystack benchmark designed for scalability, which we apply to evaluate Gemini-2.5-flash, ChatGPT-5-mini, Claude-4.5-haiku, and Deepseek-v3.2-chat. Unlike prior work, we separately evaluate literal extraction, logical inference, and hallucination risk. We identify two critical failure modes: Distributional Collapse, where performance degrades significantly when evidence is dispersed; and a Safety Tax, where anti-hallucination prompts cause over-conservative refusal of present facts and evidence, sharply reducing accuracy. Our results suggest that many failures stem from ineffective context utilization, as models struggle to prioritize relevant information even when it is present. These findings highlight the need for model-specific robustness and effective context management to ensure reliable deployment in long-horizon agentic workflows.

Long-context LLMs focus on retrieving distant evidence from extensive context, yet existing work has largely focused on overcoming distance alone. In this work, we identify the Proximity Trap, insufficient attention to distant evidence often arises less from distance itself than from cumulative competition with abundant, task-irrelevant proximal background. To address the Proximity Trap, we introduce LYRA (Long-context heavY-tailed Relevance Alignment), a t-distributed directional matching mechanism that reshapes the context retrieval distribution, directing more attention mass toward task-relevant evidence, while preserving the relative positional information encoded. Extensive experiments on LongBench-v2, RULER, and LongBench demonstrate consistent improvements across context lengths and task categories. We further introduce ProxBench, a multi-level fine-grained benchmark for evaluating distant evidence utilization under increasing proximal background interference. Project page: https://xiaoyuyoung.github.io/LYRA/