Claude Code quota drain explained: auto-compact waits until ~967K tokens by default

udmrzn · x · 2026-10-11

The community long suspected Claude Code wasn't compressing context at all, silently eating the 5-hour quota. Anthropic engineer Lydia Hallie clarified that auto-compact does summarize: once triggered, the entire history is replaced by a short summary, not stuffed with hidden tokens.

The real problem is the aggressive default: on 1M-context models, compaction only kicks in near 967K tokens. Until then, every turn carries a 800K+ token base, so even cache-hit reads rapidly burn the quota. Fears that compaction ruins caching are misplaced — the summary is mostly hot-cache reads, and you pay one small cache write for a much smaller ongoing base.

Practical fixes:

Related event: Anthropic Clarifies Claude Code Auto-Compact: Default 967K Threshold Burns Through Quota(4 posts)→

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