Cascading Context Corruption: Why One Wrong Fact Derails Your Entire Agent Run
Your agent completes a 25-step research task. The final report looks polished, citations check out, and the reasoning chain appears coherent. Except the agent hallucinated a company's founding year in step 3, and every subsequent inference — market timing analysis, competitive positioning, growth trajectory — built on that wrong date. The output is confidently, systematically wrong, and nothing in your pipeline caught it.
This is cascading context corruption: a single incorrect intermediate conclusion that propagates through subsequent reasoning steps and tool calls, compounding into system-wide failure. It is the most dangerous failure mode in long-running agents — because it looks like success.
