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Right Direction, Wrong Step: Geometric Analysis of Finite-Step Failure in Looped Transformers

arXiv · AI, language, vision and robotics · article · Sep 15, 2026 · UTC

Looped Transformers offer a parameter-efficient route to test-time scaling by reusing shared layers for iterative latent reasoning. However, additional iterations can reduce support for a reference answer, leaving unclear whether an update's direction is locally unhelpful or its full displacement moves too far. We study this distinction by analysing reference utility, which measures this support, along the model's own update direction, varying the fraction of the proposed displacement supplied to the readout. This reveals finite-step failures in which a locally improving direction produces a h

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First collected: 2026-09-20T09:01:24.920Z. This is not the publication date.