Latent Causal Void: Explicit Missing-Context Reconstruction for Misinformation Detection

The proliferation of misinformation online has driven demand for scalable detection systems. While most existing approaches rely on surface-level linguistic features or external knowledge retrieval, we examine truthfulness as a geometric property of a language model's representation space. We introduce a misinformation detection framework grounded in activation engineering, which leverages the latent geometry of transformer models. Our approach elicits a misinformation direction in the residual stream by contrasting activations from paired truthful and false statements, following the difference-in-means principle of Contrastive Activation Addition (CAA). At inference time, the last-token activation of an unseen claim is projected onto this direction, and the projected representation is fed to an Multilayer Perceptron (MLP) for classification. The procedure requires no fine-tuning of the backbone model, no external evidence retrieval, and no task-specific supervision beyond the contrastive pairs used to estimate the direction. We evaluate the method across 11 models from the Gemma, Llama, and Qwen families, ranging from 270M to 12B parameters, on three fact-checking benchmarks: AVeriTeC, LIAR, and FACTors. The falsehood direction is recoverable across model scales and architectural families, and last-token projection matches or surpasses zero-shot and few-shot prompting baselines on LIAR and FACTors, with the largest gains observed for smaller models. Performance on AVeriTeC is more limited, which we attribute to its evidence-grounded labeling scheme. These findings provide evidence that truthfulness is a structured, linearly separable concept in the latent space of pretrained language models, and point toward interpretability-driven misinformation detection as a practical complement to retrieval-based pipelines. The code is available on https://github.com/Malta-Lab/LaFaCt.

Misinformation verification increasingly occurs in public, fast-moving, and multilingual online settings, where static benchmarks provide an incomplete measure of model reliability. We introduce CommunityFact, a refreshable benchmark for misinformation detection in the wild, with three major goals: coverage, granularity, and redistributability. This release contains 15,992 standalone claims across five languages and two domains. We evaluate ten LLMs under varying inference-time capabilities, including thinking and web-search. Our results show that closed-input verification remains challenging, web access yields the largest gains, and web-enabled LLMs' source-selection policies are systematically misaligned with the sources human Community Notes raters converge on -- a gap that closes through model-specific mechanisms of retrieval expansion or pruning. We further find substantial variation across language-domain slices and across the evidence ecosystems used by web-enabled systems. Beyond evaluation, CommunityFact positions Community Notes as a training signal for claim-conditioned source suggesters that could improve factual verification on novel claims.

The proliferation of financial misinformation poses a severe threat to market stability and investor trust, misleading market behavior and creating critical information asymmetry. Detecting such misleading narratives is inherently challenging, particularly in real-world scenarios where external evidence or supplementary references for cross-verification are strictly unavailable. This paper presents our winning methodology for the "Reference-Free Financial Misinformation Detection" shared task. Built upon the recently proposed RFC-BENCH framework (Jiang et al. 2026), this task challenges models to determine the veracity of financial claims by relying solely on internal semantic understanding and contextual consistency, rather than external fact-checking. To address this formidable evaluation setup, we propose a comprehensive framework that capitalizes on the reasoning capabilities of state-of-the-art Large Language Models (LLMs). Our approach systematically integrates in-context learning, specifically zero-shot and few-shot prompting strategies, with Parameter-Efficient Fine-Tuning (PEFT) via Low-Rank Adaptation (LoRA) to optimally align the models with the subtle linguistic cues of financial manipulation. Our proposed system demonstrated superior efficacy, successfully securing the first-place ranking on both official leaderboards. Specifically, we achieved an accuracy of 95.4% on the public test set and 96.3% on the private test set, highlighting the robustness of our method and contributing to the acceleration of context-aware misinformation detection in financial Natural Language Processing. Our models (14B and 32B) are available at https://huggingface.co/KaiNKaiho.