Mitigating Reward Hacking in Preference Reward Models with Evolving Penalties

Reward hacking arises when a model improves a proxy reward by exploiting shortcuts rather than solving the intended task. We study this failure mode through the geometry of reinforcement learning updates in language models and argue that hacking emerges when optimization drifts away from a stable low-dimensional learning trajectory. We analyze this drift through dominant singular directions of parameter updates and show that reward-hacking runs exhibit substantially larger directional change than clean runs. Motivated by this observation, we introduce trusted-direction projection, which constrains gradients to remain within a clean reference subspace. Across reward-hacking experiments on mathematical reasoning, the proposed approach delays shortcut exploitation and better preserves task performance.

A higher evaluation score does not always mean a better language model system. When optimization exploits an evaluator's mistakes, measured progress can conceal unchanged or deteriorating task performance. This failure can arise through parameter updates, selection among generated outputs, or revisions to persistent prompts. We develop a comparative framework for reward hacking across these three optimization substrates: weights, selection, and text. Building on the Proxy Compression Hypothesis and research on inference-time and in-context reward hacking, we examine how reachable behavior, optimization budgets, and persistent adaptation shape exposure to proxy error. We formalize a distance-dependent upper bound on evaluator disagreement and a capacity ordering for nested policy classes, then show why distance alone cannot establish a universal ranking of vulnerability. An exact finite-output illustration demonstrates how the location of a scoring defect changes the behavior favored by each method. We also map representative defenses across substrates, identifying which mechanisms transfer directly and which offer only functional analogies. Persistent prompts receive particular attention: their contents are inspectable, but the behavior induced by a small textual change may be difficult to anticipate. The formal analysis, numerical illustration, and published evidence together provide a basis for comparing optimization methods and identifying the conditions under which their defenses transfer. The resulting framework connects optimization choices to verification requirements: reliable improvement depends on controlling accessible failure modes and preserving evidence of task quality independent of the score being optimized.

Training language models via reinforcement learning often relies on imperfect proxy rewards, since ground truth rewards that precisely define the intended behavior are rarely available. Standard metrics for assessing the quality of proxy rewards, such as ranking accuracy, treat incorrect rewards as strictly harmful. In this work, however, we highlight that not all deviations from the ground truth are equal. By theoretically analyzing which outputs attract probability during policy gradient optimization, we categorize reward errors according to their effect on the increase in ground truth reward. The analysis establishes that reward errors, though conventionally viewed as harmful, can also be benign or even beneficial by preventing the policy from stalling around outputs with mediocre ground truth reward. We then present two practical implications of our theory. First, for reinforcement learning from human feedback (RLHF), we develop reward model evaluation metrics that account for the harmfulness of reward errors. Compared to standard ranking accuracy, these metrics typically correlate better with the performance of a language model after RLHF, yet gaps remain in robustly evaluating reward models. Second, we provide insights for reward design in settings with verifiable rewards. A key theme underlying our results is that the effectiveness of a proxy reward function depends heavily on its interaction with the initial policy and learning algorithm.