Does Context Compression Preserve Refusal Alignment?

Efficient long-context inference is not only about reducing memory cost, but also about keeping useful contextual evidence accessible as generation proceeds. However, existing compression-oriented approaches, such as key-value (KV) cache compression and context compression, often either make an early decision about which contextual information to keep or rely on an external compressor. Such designs make it difficult to adapt the compressed context to the evidence needed by later reasoning steps. This paper introduces PReM (Preserve and Refresh Memory), a context-compression framework that maintains the long context as the model's internal layer-wise KV memory and learns what to preserve and when to refresh it. Specifically, PReM uses a dedicated memory layer to make memory-selection decisions, and a special memory token <m> to trigger refreshes during generation. To train this behavior, PReM introduces Phase-Separated Refresh Training, aligning memory selection with memory-conditioned generation while preserving continuity across refreshes. Experiments with 32K-token contexts show that PReM outperforms strong baselines under both 16x and 32x compression, while maintaining a favorable balance between answer quality and inference efficiency.

Long-context language model inference is bottlenecked by memory, as the KV cache grows with context length. Recent techniques to compress the KV cache fall short: they either degrade model quality substantially or require considerable time and compute to compress a single long prompt. Furthermore, many methods require the input to fit within the target model's context window, and are generally incompatible with modern production inference engines. Encoder-decoder compressors, which map a long token sequence to a shorter sequence of latent embeddings consumed by a decoder, are an appealing alternative in principle. However, existing approaches are not competitive with KV cache compression on the accuracy-efficiency frontier. In this work, we revisit encoder-decoder compression and close this gap. We first perform an architecture search, pre-training many variants from scratch to determine how best to design and train encoder-decoder compressors. Guided by our findings, we continually pre-train a family of 0.6B-encoder, 4B-decoder models on nearly 400B tokens each, at compression ratios of 1:4, 1:8, and 1:16. We introduce Latent Context Language Models (LCLMs), a family of compressors that improve the Pareto frontier across general-task performance, compression speed, and peak memory usage. LCLMs also unlock new efficient downstream applications: they serve as backbones for long-horizon agents that skim a compressed long context and adaptively expand relevant segments on demand, and they can compact the model's own generated reasoning into latent memory during inference, which is nearly lossless on the full MATH test set while being highly efficient, reducing peak KV usage by up to $7.9\times$.

Context compression improves long-context efficiency but may introduce faithfulness issues through an information bottleneck. Existing evaluations rely on QA metrics, but a reader can still answer correctly from an unfaithful compression, so these metrics underestimate such loss. To bridge this gap, we introduce KEEP-Bench, a diagnostic benchmark that directly assesses compression faithfulness with 4,102 cases across three challenging settings that require keeping evidence for plausible reference resolutions, explicit qualifiers, and minority perspectives. Experiments show that even with tailored prompting, the strongest models remain unreliable: despite context windows exceeding 100K tokens and inputs averaging only 3.1K tokens, the best open-weight model (31B) preserves all required evidence in only 66.8% of cases, and the best proprietary model in only 61.6%. Performance also varies sharply across evidence structures, so conclusions from limited structures may be biased. We further introduce a metric, Evidence Preservation Return (EPR), to relate evidence recall to inference FLOPs, and find that it peaks at moderate scales (4B-8B), where recall remains low. Additional output budget mainly benefits already strong models and widens capability gaps, yet the stronger preservation of these models comes at a steep computational cost. These findings highlight the importance for future work to investigate compressors with strong information preservation under a small computation budget, rather than relying on a large output budget or model scaling.