A single agent error rarely stays a single error. The bad output goes into the context, the next step reasons on top of it, and the mistake compounds down the trajectory — one wrong step becoming N wrong steps. This is the cascade, why it’s structurally different from a fleet-wide blast radius, and the three interruption points that stop a local mistake from eating the whole run.
A naive agent’s token bill doesn’t grow with the number of steps — it grows with the square of them, because every step re-reads the whole transcript that every previous step appended to. A small cost model shows the curve, and four structural moves turn the quadratic back into something close to linear without dropping information the agent actually needs.
When the context window fills up, the standard fix is to summarize the old turns and keep going. That summary is a lossy compression step, and the thing it silently drops is usually the one early constraint the agent needs a hundred turns later. Here’s why recency-based compaction fails, a simulation of how often the load-bearing fact survives, and the rule that actually protects it.
Treating the context window as append-only memory is how agents get slow, expensive, and quietly wrong. The fix is to run it like a cache with a budget and an eviction policy: decide what earns its tokens every turn. Here’s the cost math, the accuracy failure mode, and a working context manager.