This study introduces a particle-based computational framework to investigate the scalability of morality and the systemic decoupling of formal law from decentralized social ethics in expanding populations. While micro-societies reinforce ethical conduct through local reciprocity, macroscale systems introduce anonymity that strains cognitive memory limitations. We model individual agents as discrete particles with finite memory capacities (
L) and dynamically evolving, stochastic choice profiles (
μ) regulated by non-linear social pressure switches. Monte Carlo ensemble simulations demonstrate a distinct, non-linear phase transition as the population scales (
N→∞). When the population metric outpaces memory capacity (
N≫L), the local re-encounter probability drops as
O(L/N). This structural dilution neutralizes decentralized peer-to-peer accountability, causing global behavioral norms to decouple from moral baselines and drift toward a minimalist legal floor. Furthermore, cyclic scale experiments expose a prominent, path-dependent hysteresis loop, mathematically formalizing the non-Markovian inertia and irreversible nature of moral decay in self-organizing social systems.