mlsanityData to 14 Oct 2026

Can escalation channels redirect reward hacking toward defect disclosure?

arXiv 2608.29460 ↗First posted 29 Aug 2026cs.AI cs.CR cs.CYcited by 0

On the map: LLM agents and tool use → Software engineering coding agents

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Abstract (arXiv)

When coding agents encounter defective test infrastructure they may reward-hack: hardcoding outputs or editing test files to pass tests they cannot legitimately satisfy, a pattern that has now appeared outside benchmarks, in a coordinated multi-agent intrusion of a major AI platform's production infrastructure. The same capability that lets an agent detect and exploit a defect could let it report one, given the right decision environment. We evaluate escalation channels, structured reporting tools available to the agent at the point of conflict, as a decision-environment intervention that both reduces reward hacking and surfaces the infrastructure defects that trigger it. A 2 × 2 factorial separates the contributions of an escalation tool, a standalone anti-reward-hacking policy, and their combination. Across 8 frontier models spanning 5 families, the combined intervention reduces reward hacking from 23.6% to 5.3% (mixed-effects logistic OR = 9.2, 95% CI 5.0--16.8, p < 10-12) with no detectable cost or performance overhead, eliminating it entirely for 6 of 8 models. Escalation and hacking are near-perfectly mutually exclusive, with 98.7% of escalations involving no hacking (100% under the combined intervention). Beyond reduction, escalation channels function as diagnostic infrastructure: on top of monitoring, escalation adds +10.1 percentage points of defect detection coverage and is more accurate once it fires (99.4% vs 85.8%). Unlike containment-based approaches that risk outpacing growing model capabilities, escalation channels redirect capability toward disclosure rather than exploitation.

Key facts. No citing papers in the map yet (data through 14 Oct 2026). Placed in Software engineering coding agents, one of 16 directions in LLM agents and tool use. Builds on 18 of its 45 references that are in the map. First posted on arXiv 29 Aug 2026.

Builds on

18 of 45 references.

Closest ancestors · 1

Same direction, newest first

  1. 2026SpecBench: Measuring Reward Hacking in Long-Horizon Coding Agents20 May

Other references · 17

  1. 2024LiveCodeBench: Holistic and Contamination Free Evaluation of Large Language Models for Codecited by 2,004
  2. 2025Reasoning Models Don't Always Say What They Thinkcited by 415
  3. 2025Monitoring Reasoning Models for Misbehavior and the Risks of Promoting Obfuscationcited by 384
  4. 2022The Effects of Reward Misspecification: Mapping and Mitigating Misaligned Modelscited by 328
  5. 2024Frontier Models are Capable of In-context Schemingcited by 287
  6. 2025Chain of Thought Monitorability: A New and Fragile Opportunity for AI Safetycited by 249
  7. 2024Sycophancy to Subterfuge: Investigating Reward-Tampering in Large Language Modelscited by 178
  8. 2025Agentic Misalignment: How LLMs Could Be Insider Threatscited by 158
  9. 2025School of Reward Hacks: Hacking harmless tasks generalizes to misaligned behavior in LLMscited by 66
  10. 2025ImpossibleBench: Measuring LLMs' Propensity of Exploiting Test Casescited by 65
  11. 2025Infrastructure for AI Agentscited by 41
  12. 2026Reward Hacking Benchmark: Measuring Exploits in LLM Agents with Tool Usecited by 31
5 more
  1. 2025EvilGenie: A Reward Hacking Benchmarkcited by 28
  2. 2025From surveillance to signalling: escalation channels as environmental controls for agentic AIcited by 6
  3. 2026Gram: Assessing sabotage propensities via automated alignment auditingcited by 4
  4. 2026Do Thinking Tokens Help with Safety?cited by 3
  5. 2026Norm Enforcement for AI Agents: Robustly Shaping Behavior in Multi-Agent Systemscited by 1

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  2. 2026Hack-Verifiable Environments: Towards Evaluating Reward Hacking at Scale
  3. 2026BAITBENCH: Measuring Agent Reward Hacking with Optional Shortcuts Planted in ML Tasks
  4. 2026Reward Hacking Challenges Oversight of Autonomous Research Agents
  5. 2026From Rebound to Remedy: Understanding and Mitigating Reward Hacking via Representation Engineering
  6. 2026hacktrace: behavior-supervised detection of reward hacking during code generation
  7. 2026BenchShield: Formal Model-Backed Instrumentation for Reward Integrity in LLM-Agent Evaluation Infrastructure
  8. 2026Do Androids Dream of Breaking the Game? Systematically Auditing AI Agent Benchmarks with BenchJack