Large Reasoning Models (LRMs) rely on long reasoning traces, making inference expensive. While low-bit quantization reduces per-token decoding cost, we show that aggressive 2-bit inference can fail to deliver end-to-end speedup because instability in the generation process inflates total token count. Instead of merely lowering answer accuracy, 2-bit quantization often produces much longer traces with repetitive loops, budget exhaustion, delayed commitment, and unclosed reasoning segments. We analyze full reasoning traces of Qwen3 reasoning models across mathematical and commonsense benchmarks and show that accuracy degradation is tightly linked to these process-level failures. To address them, we introduce two lightweight controls: FP16 planning, which gives the 2-bit model a short high-precision outline, and loop rescue, which detects repetitive traces and either commits to an earlier answer or falls back to FP16. On MATH-500, loop rescue improves Qwen3-8B accuracy from 17.2% to 74.2%, while planning plus loop rescue improves Qwen3-32B from 65.0% to 87.2%. Overall, our results show that extreme low-bit reasoning becomes practical when its failures are treated as controllable generation pathologies: with lightweight detection and selective FP16 support, 2-bit inference can recover accuracy while preserving real end-to-end speed. Our code is available at: https://github.com/brain-lab-research/quantized-reasoning.
Quantization is widely used to reduce the inference cost of large language models, but its effect on reasoning models is not fully captured by final-answer accuracy or per-token latency. We show that low-bit post-training quantization can introduce a hidden test-time compute cost: quantized reasoning models often generate longer chains of thought even when they still answer correctly. Across mathematical reasoning, code generation, scientific question answering, and agentic tool-use benchmarks, we find that INT4/INT3 quantization can preserve accuracy but increase reasoning-token usage, offsetting the expected per-token speedup. To measure this effect, we introduce the CoT Token Inflation Ratio, which compares reasoning length between quantized and full-precision models averaged across all evaluation benchmarks. We further show that token inflation is accompanied by behavioral changes in the reasoning trace, including more intermediate steps and greater semantic repetition. These changes translate into measurable end-to-end real-world serving penalties. Finally, we evaluate mitigation strategies and find that prompting and decoding-time sampling offer inconsistent accuracy-length trade-offs, while quantization-aware training shows more promise in reducing both accuracy degradation and token inflation. Our results suggest that reasoning-token usage should be reported alongside accuracy when evaluating quantized reasoning models.
Post-training quantization (PTQ) is widely used to deploy large language models efficiently, but its effect on reasoning models is not well understood. Across math, coding, and science QA, we find that aggressive PTQ reduces accuracy while increasing chain-of-thought (CoT) length. Surprisingly, we show that in up to 52% of the quantized models' failures, models reach the right answer in intermediate reasoning steps but do not output it as a final answer. To understand why quantization leads to this increase in overthinking errors, we measure the token-level KL divergence between quantized and full-precision output distributions. Positions with high KL divergence correlate strongly with high next-token entropy, and at these positions quantized models disproportionately sample overthinking markers such as "wait", "but", and "alternatively". We show that simply introducing a training-free logit penalty on a curated set of overthinking markers can reduce CoT length by 12--23% while preserving or improving accuracy across 5 models (1.5B-32B parameters), 3 quantization methods, and 5 benchmarks, yielding a favorable Pareto frontier of accuracy against reasoning cost compared to penalizing other token sets. Overthinking errors produced by quantized models are particularly reduced by up to 58%.
Quantization-aware distillation (QAD) restores much of the short-form question-answering performance lost to sub-3-bit quantization, yet leaves mathematical and code reasoning substantially impaired. Long generations often degenerate into repetitive loops, exhausting the decoding budget without completing a solution. We trace this gap to quantization-amplified exposure bias: QAD trains on fixed corpus prefixes, while quantization-induced deviations compound along the model's own autoregressive trajectories. To address this mismatch, we introduce an on-policy distillation (OPD) stage that places teacher supervision where the quantized model actually goes. Starting from a QAD checkpoint, the student generates through the quantized forward path used at deployment and receives feedback from a frozen full-precision teacher on its own prefixes, combining dense token-level guidance with task-verifier rewards. Across four models at 2.79 and 1.88 effective bits, OPD raises average BF16 performance retention from 35% to 70% on MATH-500 and from 66% to 91% on HumanEval while preserving short-form performance, with reasoning gains substantially exceeding those of continued teacher-forced QAD in matched-budget comparisons. By coupling QAD's stable low-bit initialization with OPD's on-policy reasoning recovery, our framework provides a comprehensive sub-3-bit solution that preserves broad capabilities while restoring long-form reasoning.