# Beyond the Needle's Illusion: Decoupled Evaluation of Evidence Access and Use under Semantic Interference at 326M-Token Scale

arXiv: https://arxiv.org/abs/2601.20276 · HTML: https://mlsanity.com/paper/2601.20276/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Web, search, and research agents, one of 16 directions in LLM agents and tool use.
- Builds on 13 of its 19 references that are in the map.
- First posted on arXiv 28 Jan 2026.

## Placed in

- LLM agents and tool use / [Web, search, and research agents](https://mlsanity.com/agents/web-search-and-research-agents/)

## Builds on (most cited first, 13 of 13)

- [Lost in the Middle: How Language Models Use Long Contexts](https://mlsanity.com/paper/2307.03172/) (2023)
- [LongBench: A Bilingual, Multitask Benchmark for Long Context Understanding](https://mlsanity.com/paper/2308.14508/) (2023)
- [RULER: What's the Real Context Size of Your Long-Context Language Models?](https://mlsanity.com/paper/2404.06654/) (2024)
- [LongBench v2: Towards Deeper Understanding and Reasoning on Realistic Long-context Multitasks](https://mlsanity.com/paper/2412.15204/) (2024)
- [Data Contamination: From Memorization to Exploitation](https://mlsanity.com/paper/2203.08242/) (2022)
- [L-Eval: Instituting Standardized Evaluation for Long Context Language Models](https://mlsanity.com/paper/2307.11088/) (2023)
- [BABILong: Testing the Limits of LLMs with Long Context Reasoning-in-a-Haystack](https://mlsanity.com/paper/2406.10149/) (2024)
- [Survey on Evaluation of LLM-based Agents](https://mlsanity.com/paper/2503.16416/) (2025)
- [From LLM Reasoning to Autonomous AI Agents: A Comprehensive Review](https://mlsanity.com/paper/2504.19678/) (2025)
- [LongRAG: Enhancing Retrieval-Augmented Generation with Long-context LLMs](https://mlsanity.com/paper/2406.15319/) (2024)
- [LV-Eval: A Balanced Long-Context Benchmark with 5 Length Levels Up to 256K](https://mlsanity.com/paper/2402.05136/) (2024)
- [Long Context vs. RAG for LLMs: An Evaluation and Revisits](https://mlsanity.com/paper/2501.01880/) (2024)
- [U-NIAH: Unified RAG and LLM Evaluation for Long Context Needle-In-A-Haystack](https://mlsanity.com/paper/2503.00353/) (2025)

## Abstract (arXiv)

Long-context LLM agents must access the right evidence from large environments and use it faithfully. However, the popular Needle-in-a-Haystack (NIAH) evaluation mostly measures benign span localization. The needle is near-unique, and the haystack is largely irrelevant. We introduce EverMemBench-S (EMB-S), an adversarial NIAH-style benchmark built on a 326M-token MemoryBank. While the full MemoryBank spans 326M tokens for retrieval-based (RAG) evaluation, we evaluate native long-context models only at scales that fit within each model's context window (up to 1M tokens in this work) to ensure a fair comparison. EMB-S pairs queries with collision-tested near-miss hard negatives and gold evidence sets spanning one or more documents, validated via human screening and LLM verification. We also propose a decoupled diagnostic protocol that reports evidence access (document-ID localization) separately from end-to-end QA quality under full-context prompting. This enables consistent diagnosis for both native long-context prompting and retrieval pipelines. Across a reference-corpus ladder from domain-isolated 64K contexts to a globally shared 326M-token environment, we observe a clear reality gap. Systems that saturate benign NIAH degrade sharply in evidence access under semantic interference. These results indicate that semantic discrimination, not context length alone, is the dominant bottleneck for long-context memory at scale.