Can escalation channels redirect reward hacking toward defect disclosure?

arXiv:2608.29460 · cs.AI, cs.CR, cs.CY · Submitted 2026-08-29 · Read on arXiv

cs.AI, cs.CR, cs.CY

Submitted: 2026-08-29

Updated: 2026-10-09

Comments: 9 pages

Code: https://github.com/wiser-human-experimental/evilgenie-escalation

License: http://creativecommons.org/licenses/by/4.0/

The gist: 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

Terminology

Abstract

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 times 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.

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