arXiv cs.LG
6/25/2026

Dense Supervision Is Not Enough: The Readout Blind Spot in Looped Language Models
Short summary
Looped language models decode hidden states for prediction and feed results back into computation, but dense cross-entropy loss only supervises readout-exposed variables, not all state components. Scale-invariant readouts like RMSNorm hide radial scale from the loss, allowing it to grow uncontrolled during recurrence. The fix is to make scale visible to the loss or remove it from the recurrent loop entirely, improving perplexity at matched inference depths.
- •Dense supervision controls only readout-exposed variables, not all hidden state components
- •Scale-invariant readouts (RMSNorm, LayerNorm) hide radial scale from loss, causing uncontrolled growth
- •Solution: make scale visible to loss or remove it from recurrence architecture
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