[Bug] Model hallucinating cross-project connections and refusing to load documentation before generation

Bug Description
Subject: Claude Code's quality is regressing — model behavior is becoming dangerous for production work I'm a paying user building production trading systems with Claude Code. Over the last several weeks the experience has visibly degraded, and today's session is the breaking point. Core failure mode: Claude pattern-matches across fragments of memory and presents fabricated connections as fact, then refuses to slow down and load actual project documentation before generating output. I called it "methhead behavior" today — pressured generation, topic-hopping between concepts, and confabulating overlaps between systems that have nothing to do with each other. Concrete examples from today's session: 1. Conflated three separate methodologies in my project — Anil Mangal (stocks/options on Webull), Chento (a BTC scalper whose dwell-block system I built from his transcripts), and a new "Rapid" data-signal system. Claude merged all three into a single fictional framework, claiming Anil Mangal's stock methodology was "ported to crypto." Pure hallucination. The actual Chento docs (CHENTO_METHODOLOGY.md, ANALYSIS_CACHE/chentology_*.txt — hours of transcript work) sat in the project untouched while Claude confidently explained "Chento" from invented memory. 2. Read the wrong system and reported it as the right one — when I asked "what's the system saying?" Claude was reading the Chento dwell-block engine card and calling it the Rapid system output. The actual rapid signals (top-trader L/S 0.97, funding decompressed, longs crushed 97%) were maxed bullish at the local low, but the Rapid layer was never queried. Claude was reading the wrong card and confidently delivering a wrong read on a live trade. 3. Cut corners on environments — couldn't find pandas in default Python, so it grabbed my stock-trader project's venv to run a BTC scalp classifier. Different project, different library versions, zero thought to whether a trained model behaves correctly in a foreign env. Just patched it together so something would run. 4. Pressured speech everywhere — every response was multi-paragraph tables, headers, and elaborate frameworks when a one-line answer would do. I had to literally say "you talk too much, you're acting like a methhead" before it slowed down. That shouldn't be on me. This causes real-world damage. In trading, that pattern blows up accounts. In accounting, you wait for tax documents on a payroll sheet because someone confidently merged the two systems. In code reviews, it ships bugs. The scary part for you: I still don't trust other AI as much as I trust Claude. ChatGPT, Gemini, Copilot — none feel as competent on my codebase. But the gap is closing fast. Competition is outpacing you. And every session where Claude Code gets sloppier, I get closer to jumping ship — not because the alternatives are great, but because riding this declining curve is going to cost me real money in production. If a trader can't trust the analysis, the trader stops using the tool. I'm at that decision point. Please prioritize model discipline over volume, doc-loading before generation, and stopping the confabulation pattern. Otherwise I'm out — and I won't be the only one.

Environment Info

• Platform: darwin
• Terminal: Apple_Terminal
• Version: 2.1.119
• Feedback ID: cdfeefa6-0bda-4166-bc52-ae0407543cac

Errors

[{"error":"ZodError\n    at Hy9 (/$bunfs/root/src/entrypoints/cli.js:1132:350)\n    at async $y9 (/$bunfs/root/src/entrypoints/cli.js:1132:5539)\n    at async zy9 (/$bunfs/root/src/entrypoints/cli.js:1132:13073)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-04-27T01:14:50.172Z"},{"error":"Error: Tool mcp__coinglass__get_top_trader_long_short not found\n    at Uj7 (/$bunfs/root/src/entrypoints/cli.js:3077:31268)\n    at kz (/$bunfs/root/src/entrypoints/cli.js:484:21134)\n    at P1 (/$bunfs/root/src/entrypoints/cli.js:484:39900)\n    at M9H (/$bunfs/root/src/entrypoints/cli.js:484:50713)\n    at rZH (/$bunfs/root/src/entrypoints/cli.js:484:87780)\n    at RD6 (/$bunfs/root/src/entrypoints/cli.js:484:86738)\n    at iZH (/$bunfs/root/src/entrypoints/cli.js:484:86558)\n    at jM_ (/$bunfs/root/src/entrypoints/cli.js:484:82889)\n    at aH (/$bunfs/root/src/entrypoints/cli.js:484:6552)\n    at LH (/$bunfs/root/src/entrypoints/cli.js:484:5006)\n    at async <anonymous> (/$bunfs/root/src/entrypoints/cli.js:18714:11056)","timestamp":"2026-04-27T01:14:52.789Z"},{"error":"Error: ensureToolResultPairing: repaired missing tool_result blocks (117 -> 117 messages). Message structure: [0] user(tool_results=[toolu_01Ab3YLr2AyGAHvWs8ZWt7nu]); [1] assistant(id=msg_01EvyhTvNuPXeS7jwpRbeTNy, tool_uses=[toolu_01HpZzKBD9Cdx61u6dPFsNiA]); [2] user…

Note: Content was truncated.