Hallucination as Commitment Failure: Larger LLMs Misfire Despite Knowing the Answer

Large language models can hallucinate even when the knowledge required for a correct answer is already available. We study this failure through a latent-key view of inference, where answer selection depends on competition among associations acquired during pretraining. We show that model predictions can be highly sensitive to individual query keywords, that these influential keywords exhibit entity-specific binding, and that their effects are systematically shaped by pretraining frequency. Multiple bindings can also compete and exhibit higher-order interactions within the same query. Based on this mechanism, we introduce a two-stage keyword-perturbation method for hallucination detection. By removing influential keywords and measuring how the model reorganizes its prediction, the method distinguishes errors caused by misleading key associations from correct decisions supported by diagnostic evidence. Across multiple models and benchmarks, perturbation provides a strong and transferable detection signal, reaching $.910$ AUROC on probe-known ScientistQA. Finally, we extend the same probabilistic framework to four hallucination regimes: knowledge deficit, wrong knowledge, context distraction, and unstable inference. Their operational distributions across benchmarks provide diagnostic context for why different detector families succeed in different settings.

Large language models often produce hallucinated answers that violate prompt-level constraints. A key diagnostic question is whether these failures reflect missing knowledge, or whether the model has the relevant information but follows the wrong inference path. We study this phenomenon as inference misalignment: a mismatch between the answer supported by the prompt and the answer favored by statistically salient latent associations. We formalize this view with a latent key-task model, in which pretraining-frequency imbalance can cause a shortcut path to dominate the constraint-sensitive path and induce positive inference loss. The framework predicts two failure modes: task-retrieval bias in entity disambiguation and key-selection bias in action choice. We introduce TrapQA, a controlled diagnostic testbed with two components. ScientistQA tests disambiguation among similar scientists with supplementary factual probes, while Real-Life Constrained QA tests everyday constraint following under salient shortcuts. Our results show that hallucination can arise from biased latent inference rather than absent knowledge alone.

Large language models are known to hallucinate, generating linguistically plausible but incorrect answers to questions. Uncertainty quantification has been proposed as a strategy to detect such behaviour, but existing methods lack a unified framework to assess reliability at both the prompt and answer level. We introduce a geometric framework which quantifies language model uncertainty at both levels by explicitly modelling a prompt-conditioned semantic distribution in answer embedding space. Our approach is black-box and sampling-based; we generate multiple answers per prompt, and use archetypal analysis to estimate a geometric support for the answer distribution. At the prompt level, we approximate the distribution entropy to quantify uncertainty; for each individual answer, we then use notions of atypicality to assess its reliability relative to the batch. We employ our framework to not only detect hallucinations but correct them, by selecting the batch example deemed most reliable. Experiments show that our framework performs comparably to or better than prior methods on short form question-answering datasets, and achieves superior results on medical datasets where hallucinations carry particularly critical risks. Beyond pure performance, we suggest the theoretical grounding of our work provides support for semantic distributions as useful objects of study for language model uncertainty.