Cursor's compression isn't a bug. It's how it works. (opens in new tab)

The most useful sentence in Cursor's "Dynamic Context Discovery" blog post (Jan 6, 2026) is the one written in the kind of plain language engineering teams use when they've decided to admit a trade-off they haven't fully solved: When the model's context window fills up, Cursor triggers a summarization step to give the agent a fresh context window with a summary of its work so far. But the agent's knowledge can degrade after summarization since it's a lossy compression of the context. I keep c...