Extreme Low-Bit Inference in Reasoning Models: Failure Modes and Targeted Recovery

Large Reasoning Models (LRMs) rely on long reasoning traces, making inference expensive. While low-bit quantization reduces per-token decoding cost, we show that aggressive 2-bit inference can fail to deliver end-to-end speedup because instability in the generation process inflates total token count. Instead of merely lowering answer accuracy, 2-bit quantization often produces much longer traces with repetitive loops, budget exhaustion, delayed commitment, and unclosed reasoning segments. We analyze full reasoning traces of Qwen3 reasoning models across mathematical and commonsense benchmarks and show that accuracy degradation is tightly linked to these process-level failures. To address them, we introduce two lightweight controls: FP16 planning, which gives the 2-bit model a short high-precision outline, and loop rescue, which detects repetitive traces and either commits to an earlier answer or falls back to FP16. On MATH-500, loop rescue improves Qwen3-8B accuracy from 17.2% to 74.2%, while planning plus loop rescue improves Qwen3-32B from 65.0% to 87.2%. Overall, our results show that extreme low-bit reasoning becomes practical when its failures are treated as controllable generation pathologies: with lightweight detection and selective FP16 support, 2-bit inference can recover accuracy while preserving real end-to-end speed. Our code is available at: https://github.com/brain-lab-research/quantized-reasoning.