Anthropic Clarifies Claude Code Auto-Compact: Default 967K Threshold Burns Through Quota

Anthropic engineer Lydia Hallie clarified that Claude Code's auto-compact replaces the full conversation with a summary rather than keeping 1M tokens in background, and cache hits still count toward usage. The fast quota drain stems from the default 967K compaction threshold, so lowering it to around 400K can save quota.

2026-10-10 ~ 2026-10-11 · 4 related posts

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