diff --git a/src/agents/pi-embedded-runner/run.ts b/src/agents/pi-embedded-runner/run.ts
index af4fa2886f3..81f26a47902 100644
--- a/src/agents/pi-embedded-runner/run.ts
+++ b/src/agents/pi-embedded-runner/run.ts
@@ -714,8 +714,8 @@ export async function runEmbeddedPiAgent(
                   log.info(
                     `[context-overflow-recovery] Truncated ${truncResult.truncatedCount} tool result(s); retrying prompt`,
                   );
-                  // Session is now smaller; allow compaction retries again.
-                  overflowCompactionAttempts = 0;
+                  // Do NOT reset overflowCompactionAttempts here — the global cap must remain
+                  // enforced across all iterations to prevent unbounded compaction cycles (OC-65).
                   continue;
                 }
                 log.warn(