Can escalation channels redirect reward hacking toward defect disclosure?

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arXiv:2608.29460v1 Announce Type: new 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 96.8\% of escalations involving no hacking. 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 …

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