Looped Language Models (LoopLMs) perform “latent reasoning” by recursively refining internal latent representations with shared weights, offering a more effective alternative to explicit verbal reasoning. Despite their effectiveness, we find that LoopLMs remain prone to loop instability: excessive iterations can lead to errors in later iterations, producing “hard” localized uncertain tokens that contribute to reasoning errors. To address this, we propose LoopCD, loop-wise contrastive decoding that enhances the reasoning performance of LoopLMs by intervening on these tokens at inference time. Specifically, we exploit the internal dynamics of LoopLMs and contrast the logits from earlier iterations with logits from the last refined iteration to form the final sampling distribution. We find that this strategy is highly efficient, introducing only negligible inference overhead and requiring no additional training, while effectively improving reasoning performance by naturally refining reasoning-critical hard tokens. Extensive experiments show that our method improves the performance of recent representative LoopLMs across various reasoning tasks.

To mitigate the hallucination problem in large language models, DoLa exploits early exit logits from the same model as a contrastive prior. However, we found that these early exit logits tend to be flat, low in magnitude, and fail to reflect meaningful contrasts. To address this, we propose PruneCD, a novel contrastive decoding method that constructs the amateur model via layer pruning rather than early exit. This design leads to more informative and well-aligned logits, enabling more effective contrastive decoding. Through qualitative and quantitative analyses, we demonstrate that PruneCD consistently improves factuality with minimal inference overhead, offering a robust and practical approach to mitigating hallucinations in LLMs.