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Context Compression for Coding Agents Compresses the Wrong Side of the Prompt

Most engineering teams working on long-context agents hit the same billing wall around turn twenty. A coding agent runs twenty shell commands, reads twelve files, and runs pytest three times.

  • Traditional teams compress agent transcripts, but study shows this degrades coding agents.
  • LOHA and ACD techniques preserve agent's own decisions and tool outputs.
  • LOHA reduces token count by 43%-57% and improves task completion rates.

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