diff --git a/doc/architecture/runner-pi-capabilities.md b/doc/architecture/runner-pi-capabilities.md
index 5ac568312ed..1e4920a3491 100644
--- a/doc/architecture/runner-pi-capabilities.md
+++ b/doc/architecture/runner-pi-capabilities.md
@@ -214,3 +214,17 @@ The closed snapshot has been exercised against actual pinned Pi through ACP
 initialization and the missing-credential admission path without a model call.
 The exact reported `currentModelId` and billable receipt still need credentialed
 local and Linux/Daytona qualification.
+
+Profile version 2 declaration digest: `sha256:b18deb44976b92e5e6b4f874f6e28dbbf23b34c917879ee3f7cdc03472919476`. It hashes the versioned
+profile domain, patched wrapper source and platform closure pins. Every native
+closure remains independently checked at launch. Version 1 warm sessions cannot
+be reused with this integration.
+
+Pi 0.84.2 emits `compaction_start`/`compaction_end`; the wrapper maps those
+events, includes terminal `result.usage` receipts once, and retains bounded
+summarization retry progress. Manual compaction requires an idle session and has
+a 120-second RPC deadline; deadline expiry terminates Pi so a timed-out operation
+cannot continue invisibly. Successful compaction reports
+`assistant_message_and_compaction_receipts` provenance. Pi's summarization retry
+helper discards failed-attempt usage, so any retry or missing compaction receipt
+invalidates complete-turn token/cost totals instead of inventing complete coverage.
diff --git a/packages/paperclip-runner/runner/crates/runner-core/src/acpx_provider_backend.rs b/packages/paperclip-runner/runner/crates/runner-core/src/acpx_provider_backend.rs
index 3c84813dd42..b015701cdc0 100644
--- a/packages/paperclip-runner/runner/crates/runner-core/src/acpx_provider_backend.rs
+++ b/packages/paperclip-runner/runner/crates/runner-core/src/acpx_provider_backend.rs
@@ -170,7 +170,7 @@ impl AcpxProviderDescriptor {
                 "0.0.33",
                 Some("@earendil-works/pi-coding-agent"),
                 Some("0.84.2"),
-                "sha256:8c696f38296d53d0061fa11534570c5ddd951b63532aed30e0f1fcc676dc169f",
+                "sha256:b18deb44976b92e5e6b4f874f6e28dbbf23b34c917879ee3f7cdc03472919476",
             ),
             "cursor" => (
                 self.model.as_str(),
@@ -2461,7 +2461,7 @@ mod tests {
                 "pi",
                 "pi-acp",
                 "0.0.33",
-                "sha256:8c696f38296d53d0061fa11534570c5ddd951b63532aed30e0f1fcc676dc169f",
+                "sha256:b18deb44976b92e5e6b4f874f6e28dbbf23b34c917879ee3f7cdc03472919476",
                 Some("@earendil-works/pi-coding-agent"),
                 Some("0.84.2"),
                 "openrouter/deepseek/deepseek-v4-flash-0731",
diff --git a/packages/paperclip-runner/scripts/materialize-pi-distribution.mjs b/packages/paperclip-runner/scripts/materialize-pi-distribution.mjs
index a31291f2eff..1daaba6d2da 100644
--- a/packages/paperclip-runner/scripts/materialize-pi-distribution.mjs
+++ b/packages/paperclip-runner/scripts/materialize-pi-distribution.mjs
@@ -18,8 +18,8 @@ const patchPath = join(workspaceRoot, "patches/pi-acp@0.0.33.patch");
 const supportedTargets = new Set(["darwin-arm64", "darwin-x64", "linux-x64"]);
 export const PI_DISTRIBUTION_PINS = Object.freeze({
   wrapper: "0.0.33", runtime: "0.84.2", sdk: "0.26.0", zod: "3.25.76", nodeVersion: PI_NODE_VERSION,
-  wrapperSha256: "18375d30e7eca9fddf6c024f49899d6da38c064d8587aa1678fd4c2d70308fbc",
-  helperSha256: "57dd03e3d1e59d0191f0dd66f5a809e6c825de3c4b6660bff697686c160a659f",
+  wrapperSha256: "80c0e302e75b39d71404c69afb2d5182c468ccdee68bfe8b09f1f40e20a47fb4",
+  helperSha256: "4333d284ff06ab1195e49630041f0b03a486a92fc678100525ad107e0982dba1",
 });
 const hash = (bytes) => createHash("sha256").update(bytes).digest("hex");
 
diff --git a/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.test.ts b/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.test.ts
index f1142176d4e..38381472c3d 100644
--- a/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.test.ts
+++ b/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.test.ts
@@ -91,6 +91,16 @@ describe("Pi ACP bridge", () => {
     } });
   });
 
+  it("accounts compaction receipts once and does not fabricate partial coverage", () => {
+    const usage = new PiTurnUsage();
+    usage.accept({ role: "assistant", timestamp: 1, stopReason: "error", usage: { input: 1, output: 2, cacheRead: 0, cacheWrite: 0, cost: { total: 0.01 } } });
+    const compacted = { firstKeptEntryId: "entry-2", tokensBefore: 100, summary: "Context summary", usage: { input: 10, output: 4, cacheRead: 2, cacheWrite: 0, cost: { total: 0.02 } } };
+    usage.acceptCompaction(compacted); usage.acceptCompaction(compacted);
+    expect(usage.response()).toMatchObject({ usage: { inputTokens: 11, outputTokens: 6, totalTokens: 19, _meta: { paperclipPi: { provenance: "assistant_message_and_compaction_receipts", costUsd: 0.03 } } }, _meta: { jetbrains: { air: { sessionFailure: { severity: "error" } } } } });
+    usage.acceptCompaction({ summary: "Missing usage" });
+    expect(usage.response().usage).toEqual({ _meta: { paperclipPi: { provenance: "assistant_message_and_compaction_receipts" } } });
+  });
+
   it("launches verified paths only and rejects session escapes", async () => {
     const root = await mkdtemp(join(tmpdir(), "paperclip-pi-launch-")); temporary.push(root);
     await mkdir(join(root, "sessions"));
diff --git a/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.ts b/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.ts
index d8b9156474d..09a8295568a 100644
--- a/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.ts
+++ b/packages/paperclip-runner/src/drivers/acpx/pi-acp-runtime.ts
@@ -210,7 +210,7 @@ export class PiUiBridge {
   }
 }
 
-/** Sum actual assistant receipts, never context occupancy or estimated cost. */
+/** Sum native usage receipts; preserve missing fields and label catalog pricing. */
 export class PiTurnUsage {
   private seen = new Set<string>();
   private total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 };
@@ -218,9 +218,10 @@ export class PiTurnUsage {
   private unknown = new Set<keyof typeof this.total>();
   private costObserved = false;
   private costIncomplete = false;
+  private compactionObserved = false;
   private failed = false;
   private observed = false;
-  reset(): void { this.seen.clear(); this.total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 }; this.cost = 0; this.unknown.clear(); this.costObserved = false; this.costIncomplete = false; this.failed = false; this.observed = false; }
+  reset(): void { this.seen.clear(); this.total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 }; this.cost = 0; this.unknown.clear(); this.costObserved = false; this.costIncomplete = false; this.compactionObserved = false; this.failed = false; this.observed = false; }
   accept(value: unknown): void {
     const message = record(value);
     if (message.role !== "assistant") return;
@@ -252,9 +253,30 @@ export class PiTurnUsage {
     } else this.costIncomplete = true;
   }
 
+  markIncomplete(): void {
+    for (const name of Object.keys(this.total)) this.unknown.add(name as keyof typeof this.total);
+    this.costIncomplete = true;
+  }
+
+  acceptCompaction(value: unknown): void {
+    this.compactionObserved = true;
+    const result = value && typeof value === "object" && !Array.isArray(value) ? record(value) : {};
+    if (!result.usage || typeof result.usage !== "object") {
+      // A compaction may consume tokens even if its terminal receipt is absent.
+      // Known assistant counters alone cannot establish the complete turn.
+      this.markIncomplete();
+      return;
+    }
+    const previousFailure = this.failed;
+    this.accept({ role: "assistant", id: "compaction", timestamp: result.firstKeptEntryId,
+      content: [result.tokensBefore, result.summary], usage: result.usage });
+    // A successful summary is not proof that an earlier failed model turn recovered.
+    this.failed = previousFailure;
+  }
+
   response(): RecordValue {
     return {
-      ...(this.observed ? { usage: { ...Object.fromEntries(Object.entries(this.total).filter(([name]) => !this.unknown.has(name as keyof typeof this.total))), _meta: { paperclipPi: { provenance: "assistant_message_receipts", ...(this.costObserved && !this.costIncomplete ? { costUsd: this.cost, costSource: "pi_pricing_estimate" } : {}) } } } } : {}),
+      ...(this.observed ? { usage: { ...Object.fromEntries(Object.entries(this.total).filter(([name]) => !this.unknown.has(name as keyof typeof this.total))), _meta: { paperclipPi: { provenance: this.compactionObserved ? "assistant_message_and_compaction_receipts" : "assistant_message_receipts", ...(this.costObserved && !this.costIncomplete ? { costUsd: this.cost, costSource: "pi_pricing_estimate" } : {}) } } } } : {}),
       ...(this.failed ? { _meta: { jetbrains: { air: { version: 1, sessionFailure: { severity: "error", category: "service", title: "Pi provider request failed" } } } } } : {}),
     };
   }
diff --git a/packages/paperclip-runner/src/drivers/acpx/pi-closure-pins.ts b/packages/paperclip-runner/src/drivers/acpx/pi-closure-pins.ts
index 298e00f63a6..9ee942494be 100644
--- a/packages/paperclip-runner/src/drivers/acpx/pi-closure-pins.ts
+++ b/packages/paperclip-runner/src/drivers/acpx/pi-closure-pins.ts
@@ -6,7 +6,7 @@
  * three pins. Never accept a digest supplied only by an installed manifest.
  */
 export const PI_DISTRIBUTION_CLOSURE_SHA256 = Object.freeze({
-  "darwin-arm64": "f2c95f532e4b56a57e938ceb62b5ea1a86bc721cba29b41de6270afe3fe0041f",
-  "darwin-x64": "93f3c06c91fc9e06084dff083f3b43ac100dee3ac2c5f5981e3d281f1e561a20",
-  "linux-x64": "99707d2c78656bebdf5df4b85e4674a72d5d30a3a0c730536246251a2889d0a8",
+  "darwin-arm64": "2fde022b3714c497f352e628789c4dd47b6446351dc69779293b3a0eafcbc17f",
+  "darwin-x64": "049fe566c4844db05187cc7e3e94b813f9a3fa8600d37c344f3b425b8776f743",
+  "linux-x64": "12ff126d91bc296f39bd6c82b52b95dbf8075076e6257bb73256b043f614f391",
 });
diff --git a/packages/paperclip-runner/src/drivers/acpx/pi-installation.test.ts b/packages/paperclip-runner/src/drivers/acpx/pi-installation.test.ts
index 04990d95f60..b9cbfc005d0 100644
--- a/packages/paperclip-runner/src/drivers/acpx/pi-installation.test.ts
+++ b/packages/paperclip-runner/src/drivers/acpx/pi-installation.test.ts
@@ -1,5 +1,6 @@
-import { cp, mkdir, mkdtemp, rm, symlink, writeFile } from "node:fs/promises";
+import { cp, mkdir, mkdtemp, readFile, rm, symlink, writeFile } from "node:fs/promises";
 import { once } from "node:events";
+import { createHash } from "node:crypto";
 import { StringDecoder } from "node:string_decoder";
 import { tmpdir } from "node:os";
 import { join } from "node:path";
@@ -22,6 +23,13 @@ async function fixture() {
 }
 
 describe("Pi installation factory", () => {
+  it("binds the profile declaration to the reviewed patch and platform closure pins", async () => {
+    const digest = createHash("sha256").update("paperclip.pi.rich-acp.profile.v2\0")
+      .update(await readFile(new URL("../../../../../patches/pi-acp@0.0.33.patch", import.meta.url)))
+      .update("\0").update(await readFile(new URL("./pi-closure-pins.ts", import.meta.url))).digest("hex");
+    expect(QUALIFIED_ACPX_PROFILES.pi.commandDigest).toBe(`sha256:${digest}`);
+  });
+
   it("rejects legacy profiles and caller-selected identities", () => {
     expect(() => assertPiInstallationProfile(candidate())).not.toThrow();
     expect(() => assertPiInstallationProfile({ ...candidate(), agentProfileVersion: 1 })).toThrow("version 2");
diff --git a/packages/paperclip-runner/src/drivers/acpx/qualified-profiles.ts b/packages/paperclip-runner/src/drivers/acpx/qualified-profiles.ts
index aff023bb8f1..c1547430f88 100644
--- a/packages/paperclip-runner/src/drivers/acpx/qualified-profiles.ts
+++ b/packages/paperclip-runner/src/drivers/acpx/qualified-profiles.ts
@@ -47,13 +47,14 @@ export const QUALIFIED_ACPX_PROFILES: Readonly<
     protocolVersion: ACPX_DRIVER_PROTOCOL_VERSION,
     acpxVersion: QUALIFIED_ACPX_VERSION,
     agent: "pi",
-    agentProfileVersion: 1,
+    agentProfileVersion: 2,
+    qualificationStatus: "pending",
     agentServerPackage: "pi-acp",
     agentServerVersion: "0.0.33",
     agentRuntimePackage: "@earendil-works/pi-coding-agent",
     agentRuntimeVersion: "0.84.2",
     commandDigest:
-      "sha256:8c696f38296d53d0061fa11534570c5ddd951b63532aed30e0f1fcc676dc169f",
+      "sha256:b18deb44976b92e5e6b4f874f6e28dbbf23b34c917879ee3f7cdc03472919476",
     qualificationModel: "openrouter/deepseek/deepseek-v4-flash-0731",
     reportedModelId: "openrouter/deepseek/deepseek-v4-flash-0731",
     permissionPolicy: "interactive",
diff --git a/packages/paperclip-runner/test-fixtures/pi-acp/fake-pi.mjs b/packages/paperclip-runner/test-fixtures/pi-acp/fake-pi.mjs
index 838898c56ab..9d641195954 100644
--- a/packages/paperclip-runner/test-fixtures/pi-acp/fake-pi.mjs
+++ b/packages/paperclip-runner/test-fixtures/pi-acp/fake-pi.mjs
@@ -9,6 +9,7 @@ writeFileSync(sessionFile, JSON.stringify({ type: "session", cwd: process.cwd()
 const output = (value) => process.stdout.write(JSON.stringify(value) + "\n");
 let active = false;
 let model = "fixture-model";
+const compaction = () => ({ firstKeptEntryId: "fixture-entry", tokensBefore: 50, summary: "Fixture compacted", usage: { input: 5, output: 2, cacheRead: 1, cacheWrite: 0, cost: { total: 0.02 } } });
 const finish = (answer = "done") => {
   output({ type: "message_update", assistantMessageEvent: { type: "text_delta", delta: answer } });
   output({ type: "message_end", message: { role: "assistant", timestamp: Date.now(), stopReason: "stop", usage: { input: 11, output: 3, cacheRead: 2, cacheWrite: 0, cost: { total: 0.01 } } } });
@@ -27,11 +28,13 @@ createInterface({ input: process.stdin }).on("line", (line) => {
   if (request.type === "get_commands") { response({ commands: process.env.PI_FIXTURE_EXTENSION_FAIL ? [] : [{ name: "paperclip-runtime-ready-v1", description: "Paperclip runtime gate v1", source: "extension" }] }); return; }
   if (request.type === "steer") { response(); output({ type: "message_update", assistantMessageEvent: { type: "text_delta", delta: `steered:${request.message}` } }); return; }
   if (request.type === "follow_up") { response(); finish(`follow-up:${request.message}`); return; }
+  if (request.type === "compact") { output({ type: "compaction_start", reason: "manual" }); const result = compaction(); output({ type: "compaction_end", reason: "manual", result, aborted: false, willRetry: false }); response(result); return; }
   if (request.type === "abort") { response(); if (active) { active = false; output({ type: "agent_settled" }); } return; }
   if (request.type === "prompt") {
     response({ disposition: "started" }); active = true; output({ type: "agent_start" });
     if (request.message === "die") { process.exit(4); }
     if (request.message === "long") return;
+    if (request.message === "auto-compact" || request.message === "retry-compact") { output({ type: "compaction_start", reason: "threshold" }); if (request.message === "retry-compact") output({ type: "summarization_retry_scheduled" }); output({ type: "compaction_end", reason: "threshold", result: compaction(), aborted: false, willRetry: true }); finish("compacted"); return; }
     if (request.message === "question") { output({ type: "extension_ui_request", id: "question-id", method: "input", title: "Project name", placeholder: "Name" }); return; }
     if (request.message === "permission") { output({ type: "extension_ui_request", id: "permission-id", method: "select", title: 'paperclip.pi.permission.v1:{"toolCallId":"tool-1","toolName":"bash","input":{"command":"pwd"}}', options: ["Allow once", "Allow for this session", "Deny"] }); return; }
     if (request.message === "failure") {
diff --git a/packages/paperclip-runner/test/pi-acp-package-contract.test.mjs b/packages/paperclip-runner/test/pi-acp-package-contract.test.mjs
index f6243380e44..04c3b479107 100644
--- a/packages/paperclip-runner/test/pi-acp-package-contract.test.mjs
+++ b/packages/paperclip-runner/test/pi-acp-package-contract.test.mjs
@@ -77,7 +77,7 @@ async function fixture(t, extra = {}) {
     await rm(root, { recursive: true, force: true });
   });
   const initialized = await call("initialize", { protocolVersion: 1, clientCapabilities: { elicitation: { form: {} } } });
-  return { call, initialized, root, notifications, requests, setAnswer(value) { answer = value; } };
+  return { call, notify(method, params) { send({ jsonrpc: "2.0", method, params }); }, initialized, root, notifications, requests, setAnswer(value) { answer = value; } };
 }
 
 test("actual patched ACP process streams thinking and waits for settlement with usage", async (t) => {
@@ -122,3 +122,23 @@ test("provider failure is typed and unadmitted slash commands cannot bypass cont
   assert.equal(result._meta.jetbrains.air.sessionFailure.severity, "error");
   await assert.rejects(f.call("session/prompt", { sessionId: session.sessionId, prompt: [{ type: "text", text: "/export /outside/report.html" }] }), /not admitted/);
 });
+
+test("manual and automatic compaction retain Pi 0.84.2 progress and usage", async (t) => {
+  const f = await fixture(t); const session = await f.call("session/new", { cwd: join(f.root, "workspace"), mcpServers: [] });
+  const prompt = (text) => f.call("session/prompt", { sessionId: session.sessionId, prompt: [{ type: "text", text }] });
+  const manual = await prompt("/compact");
+  assert.equal(manual.usage.inputTokens, 5); assert.equal(manual.usage.totalTokens, 8);
+  assert.equal(manual.usage._meta.paperclipPi.provenance, "assistant_message_and_compaction_receipts");
+  const automatic = await prompt("auto-compact");
+  assert.equal(automatic.usage.inputTokens, 16); assert.equal(automatic.usage.totalTokens, 24);
+  assert.equal(automatic.usage._meta.paperclipPi.costUsd, 0.03);
+  assert.ok(f.notifications.some((event) => event.params?.update?.content?.text === "Context compaction finished."));
+  const retried = await prompt("retry-compact");
+  assert.equal(retried.usage.inputTokens, undefined);
+  assert.equal(retried.usage._meta.paperclipPi.costUsd, undefined);
+  assert.ok(f.notifications.some((event) => event.params?.update?.content?.text === "Context summarization is retrying a provider request."));
+  const active = prompt("long"); await new Promise((resolve) => setTimeout(resolve, 25));
+  await assert.rejects(prompt("/compact"), /requires an idle session/);
+  f.notify("session/cancel", { sessionId: session.sessionId }); await active;
+  assert.match(packageSource, /this\.request\(\{ type: "compact", customInstructions \}, 120000\)/);
+});
diff --git a/patches/pi-acp@0.0.33.patch b/patches/pi-acp@0.0.33.patch
index 826cf5915cc..2ca62476dc8 100644
--- a/patches/pi-acp@0.0.33.patch
+++ b/patches/pi-acp@0.0.33.patch
@@ -1,4 +1,3 @@
-diff --git a/dist/index.js b/dist/index.js
 --- a/dist/index.js
 +++ b/dist/index.js
 @@ -11,6 +11,7 @@
@@ -127,7 +126,23 @@ diff --git a/dist/index.js b/dist/index.js
      }
    }
    /**
-@@ -288,12 +287,17 @@
+@@ -242,7 +241,7 @@
+     if (!res.success) throw new Error(`pi set_steering_mode failed: ${res.error ?? JSON.stringify(res.data)}`);
+   }
+   async compact(customInstructions) {
+-    const res = await this.request({ type: "compact", customInstructions });
++    const res = await this.request({ type: "compact", customInstructions }, 120000);
+     if (!res.success) throw new Error(`pi compact failed: ${res.error ?? JSON.stringify(res.data)}`);
+     return res.data;
+   }
+@@ -283,17 +282,23 @@
+     await this.writeLine(`${JSON.stringify({ type: "extension_ui_response", ...response })}
+ `);
+   }
+-  request(cmd) {
++  request(cmd, timeoutMs = 30000) {
++    if (!Number.isSafeInteger(timeoutMs) || timeoutMs < 1 || timeoutMs > 120000) throw new Error("Invalid Pi RPC deadline");
+     const id = crypto.randomUUID();
      const withId = { ...cmd, id };
      const line = `${JSON.stringify(withId)}
  `;
@@ -138,7 +153,7 @@ diff --git a/dist/index.js b/dist/index.js
 -        this.pending.delete(id);
 -        reject(error);
 -      });
-+      const timer = setTimeout(() => finish(new Error("Pi RPC request timed out")), 30000);
++      const timer = setTimeout(() => { finish(new Error("Pi RPC request timed out")); this.dispose("SIGKILL"); }, timeoutMs);
 +      timer.unref();
 +      const finish = (error, value) => {
 +        if (!this.pending.delete(id)) return;
@@ -150,7 +165,7 @@ diff --git a/dist/index.js b/dist/index.js
      });
    }
    writeLine(line) {
-@@ -337,7 +341,7 @@
+@@ -337,7 +342,7 @@
      {
        authMethods: getAuthMethods()
      },
@@ -159,7 +174,7 @@ diff --git a/dist/index.js b/dist/index.js
    );
  }
 
-@@ -714,6 +718,7 @@
+@@ -714,6 +719,7 @@
      try {
        proc = await PiRpcProcess.spawn({
          cwd: params.cwd,
@@ -167,7 +182,7 @@ diff --git a/dist/index.js b/dist/index.js
          piCommand: params.piCommand
        });
      } catch (e) {
-@@ -808,6 +813,9 @@
+@@ -808,6 +814,9 @@
      this.proc = opts.proc;
      this.conn = opts.conn;
      this.fileCommands = opts.fileCommands ?? [];
@@ -177,7 +192,7 @@ diff --git a/dist/index.js b/dist/index.js
      this.proc.onEvent((ev) => this.handlePiEvent(ev));
    }
    setStartupInfo(text) {
-@@ -852,6 +860,7 @@
+@@ -852,6 +861,7 @@
    }
    async cancel() {
      this.cancelRequested = true;
@@ -185,7 +200,7 @@ diff --git a/dist/index.js b/dist/index.js
      if (this.turnQueue.length) {
        const queued = this.turnQueue.splice(0, this.turnQueue.length);
        for (const t of queued) t.resolve("cancelled");
-@@ -920,12 +929,16 @@
+@@ -920,12 +930,16 @@
      this.cancelRequested = false;
      this.inAgentLoop = false;
      this.pendingTurn = { resolve: t.resolve, reject: t.reject };
@@ -202,7 +217,7 @@ diff --git a/dist/index.js b/dist/index.js
          const authErr = maybeAuthRequiredError(err);
          if (authErr) {
            this.pendingTurn?.reject(authErr);
-@@ -946,6 +959,23 @@
+@@ -946,6 +960,23 @@
    handlePiEvent(ev) {
      const type = String(ev.type ?? "");
      switch (type) {
@@ -226,7 +241,7 @@ diff --git a/dist/index.js b/dist/index.js
        case "message_update": {
          const ame = ev.assistantMessageEvent;
          if (ame?.type === "text_delta" && typeof ame.delta === "string") {
-@@ -1047,7 +1077,7 @@
+@@ -1047,7 +1078,7 @@
            if (p) {
              try {
                const abs = isAbsolute(p) ? p : resolvePath(this.cwd, p);
@@ -235,7 +250,7 @@ diff --git a/dist/index.js b/dist/index.js
                this.fileSnapshots.set(toolCallId, { path: p, oldText: snapshotOldText });
                if (toolName === "edit") {
                  for (const needle of getEditOldTexts(args)) {
-@@ -1125,7 +1155,7 @@
+@@ -1125,7 +1156,7 @@
          if (!isError && snapshot) {
            try {
              const abs = isAbsolute(snapshot.path) ? snapshot.path : resolvePath(this.cwd, snapshot.path);
@@ -244,7 +259,7 @@ diff --git a/dist/index.js b/dist/index.js
              if (snapshot.oldText === null || newText !== snapshot.oldText) {
                hasStructuredDiff = true;
                content = [
-@@ -1154,14 +1184,11 @@
+@@ -1154,14 +1185,11 @@
          break;
        }
        case "extension_ui_request": {
@@ -263,7 +278,46 @@ diff --git a/dist/index.js b/dist/index.js
          break;
        }
        case "auto_retry_start": {
-@@ -1210,9 +1237,12 @@
+@@ -1178,24 +1206,22 @@
+         });
+         break;
+       }
+-      case "auto_compaction_start": {
+-        this.emit({
+-          sessionUpdate: "agent_message_chunk",
+-          content: {
+-            type: "text",
+-            text: "Context nearing limit, running automatic compaction..."
+-          }
+-        });
++      case "compaction_start": {
++        this.emit({ sessionUpdate: "agent_message_chunk", content: {
++          type: "text", text: ev.reason === "manual" ? "Compacting context..." : "Context nearing limit, running automatic compaction..."
++        } });
+         break;
+       }
+-      case "auto_compaction_end": {
+-        this.emit({
+-          sessionUpdate: "agent_message_chunk",
+-          content: {
+-            type: "text",
+-            text: "Automatic compaction finished; context was summarized to continue the session."
+-          }
+-        });
++      case "compaction_end": {
++        (this.pendingTurn ? this.turnUsage : this.manualCompactionUsage)?.acceptCompaction(ev.result);
++        this.emit({ sessionUpdate: "agent_message_chunk", content: {
++          type: "text", text: ev.aborted ? "Context compaction cancelled." : ev.errorMessage ? "Context compaction failed." : "Context compaction finished."
++        } });
++        break;
++      }
++      case "summarization_retry_scheduled": {
++        (this.pendingTurn ? this.turnUsage : this.manualCompactionUsage)?.markIncomplete();
++        this.emit({ sessionUpdate: "agent_message_chunk", content: { type: "text", text: "Context summarization is retrying a provider request." } });
+         break;
+       }
+       case "agent_start": {
+@@ -1210,9 +1236,12 @@
          break;
        }
        case "agent_settled": {
@@ -277,7 +331,7 @@ diff --git a/dist/index.js b/dist/index.js
            this.pendingTurn = null;
            this.inAgentLoop = false;
            const next = this.turnQueue.shift();
-@@ -1725,6 +1755,7 @@
+@@ -1725,6 +1754,7 @@
    return process.env.PI_CODING_AGENT_DIR ? resolve3(process.env.PI_CODING_AGENT_DIR) : join4(homedir4(), ".pi", "agent");
  }
  function getEnableSkillCommands(cwd) {
@@ -285,7 +339,7 @@ diff --git a/dist/index.js b/dist/index.js
    const merged = getMergedSettings(cwd);
    const direct = merged.enableSkillCommands;
    if (typeof direct === "boolean") return direct;
-@@ -1733,6 +1764,7 @@
+@@ -1733,6 +1763,7 @@
    return true;
  }
  function getQuietStartup(cwd) {
@@ -293,7 +347,7 @@ diff --git a/dist/index.js b/dist/index.js
    const merged = getMergedSettings(cwd);
    const direct = merged.quietStartup;
    if (typeof direct === "boolean") return direct;
-@@ -1824,6 +1856,7 @@
+@@ -1824,6 +1855,7 @@
    const out = [];
    const seen = /* @__PURE__ */ new Set();
    for (const c of [...a, ...b]) {
@@ -301,7 +355,7 @@ diff --git a/dist/index.js b/dist/index.js
      if (seen.has(c.name)) continue;
      seen.add(c.name);
      out.push(c);
-@@ -1884,11 +1917,13 @@
+@@ -1884,11 +1916,13 @@
          throw RequestError3.invalidParams(`Unknown sessionId: ${sessionId}`);
        }
        const cwd = opts?.cwd ?? stored.cwd;
@@ -315,7 +369,7 @@ diff --git a/dist/index.js b/dist/index.js
            piCommand: process.env.PI_ACP_PI_COMMAND
          });
        } catch (e) {
-@@ -1897,7 +1932,7 @@
+@@ -1897,7 +1931,7 @@
          }
          throw e;
        }
@@ -324,7 +378,7 @@ diff --git a/dist/index.js b/dist/index.js
        const session = this.sessions.getOrCreate(sessionId, {
          cwd,
          mcpServers: opts?.mcpServers ?? [],
-@@ -1917,6 +1952,7 @@
+@@ -1917,6 +1951,7 @@
      }
    }
    async initialize(params) {
@@ -332,7 +386,7 @@ diff --git a/dist/index.js b/dist/index.js
      const supportedVersion = 1;
      const requested = params.protocolVersion;
      return {
-@@ -1933,7 +1969,8 @@
+@@ -1933,7 +1968,8 @@
        }),
        agentCapabilities: {
          loadSession: true,
@@ -342,7 +396,7 @@ diff --git a/dist/index.js b/dist/index.js
          promptCapabilities: {
            image: true,
            audio: false,
-@@ -1942,8 +1979,7 @@
+@@ -1942,8 +1978,7 @@
          sessionCapabilities: {
            // **UNSTABLE** ACP capability used by Zed's codex-acp adapter.
            // Enables a native session picker in clients that support it.
@@ -352,7 +406,7 @@ diff --git a/dist/index.js b/dist/index.js
          }
        }
      };
-@@ -1953,7 +1989,7 @@
+@@ -1953,7 +1988,7 @@
        throw RequestError3.invalidParams(`cwd must be an absolute path: ${params.cwd}`);
      }
      this.lastSessionCwd = params.cwd;
@@ -361,7 +415,7 @@ diff --git a/dist/index.js b/dist/index.js
      const enableSkillCommands = getEnableSkillCommands(params.cwd);
      const session = await this.sessions.create({
        cwd: params.cwd,
-@@ -1994,14 +2030,14 @@
+@@ -1994,14 +2029,14 @@
        this.cleanupFailedNewSession(session.sessionId, state);
        throw RequestError3.authRequired(
          { authMethods: getAuthMethods() },
@@ -378,8 +432,11 @@ diff --git a/dist/index.js b/dist/index.js
        );
      }
      const { configOptions, models, modes } = await getSessionConfiguration(session.proc, {
-@@ -2066,6 +2102,8 @@
+@@ -2064,34 +2099,27 @@
+   }
+   async prompt(params) {
      const session = await this.restoreSession(params.sessionId);
++    if (session.manualCompactionUsage) throw RequestError3.invalidParams("Pi context compaction is active");
      const { message, images } = promptToPiMessage(params.prompt);
      if (images.length === 0 && message.trimStart().startsWith("/")) {
 +      const command = message.trim().split(/\s+/)[0];
@@ -387,7 +444,42 @@ diff --git a/dist/index.js b/dist/index.js
        const trimmed = message.trim();
        const space = trimmed.indexOf(" ");
        const cmd = space === -1 ? trimmed.slice(1) : trimmed.slice(1, space);
-@@ -2432,8 +2470,18 @@
+       const argsString = space === -1 ? "" : trimmed.slice(space + 1);
+       const args = parseCommandArgs(argsString);
+       if (cmd === "compact") {
++        if (session.pendingTurn || session.manualCompactionUsage) throw RequestError3.invalidParams("Manual compaction requires an idle session");
+         const customInstructions = args.join(" ").trim() || void 0;
+-        const res = await session.proc.compact(customInstructions);
+-        const r = res && typeof res === "object" ? res : null;
+-        const tokensBefore = typeof r?.tokensBefore === "number" ? r.tokensBefore : null;
+-        const summary = typeof r?.summary === "string" ? r.summary : null;
+-        const headerLines = [
+-          `Compaction completed.${customInstructions ? " (custom instructions applied)" : ""}`,
+-          tokensBefore !== null ? `Tokens before: ${tokensBefore}` : null
+-        ].filter(Boolean);
+-        const text = headerLines.join("\n") + (summary ? `
+-
+-${summary}` : "");
+-        await this.conn.sessionUpdate({
+-          sessionId: session.sessionId,
+-          update: {
+-            sessionUpdate: "agent_message_chunk",
+-            content: { type: "text", text }
+-          }
+-        });
+-        return { stopReason: "end_turn" };
++        const compactionUsage = new PiTurnUsage();
++        session.manualCompactionUsage = compactionUsage;
++        try {
++          const res = await session.proc.compact(customInstructions);
++          compactionUsage.acceptCompaction(res);
++          await session.flushEmits();
++          return { stopReason: "end_turn", ...compactionUsage.response() };
++        } finally { session.manualCompactionUsage = null; }
+       }
+       if (cmd === "session") {
+         const stats = await session.proc.getSessionStats();
+@@ -2432,8 +2460,18 @@
        }
      }
      const result = await session.prompt(message, images);
@@ -408,7 +500,7 @@ diff --git a/dist/index.js b/dist/index.js
    }
    async cancel(params) {
      const session = this.sessions.maybeGet(params.sessionId);
-@@ -2473,7 +2521,7 @@
+@@ -2473,7 +2511,7 @@
        mcpServers: params.mcpServers
      });
      const proc = session.proc;
@@ -417,7 +509,7 @@ diff --git a/dist/index.js b/dist/index.js
      this.sessions.closeAllExcept?.(session.sessionId);
      this.store.upsert({
        sessionId: params.sessionId,
-@@ -2607,6 +2655,7 @@
+@@ -2607,6 +2645,7 @@
      return response;
    }
    async deleteSession(params) {
@@ -425,7 +517,7 @@ diff --git a/dist/index.js b/dist/index.js
      const stored = this.store.get(params.sessionId);
      const piSession = findPiSession(params.sessionId);
      if (!stored && !piSession) {
-@@ -2828,6 +2877,7 @@
+@@ -2828,6 +2867,7 @@
    return 0;
  }
  function buildUpdateNotice() {
@@ -433,7 +525,7 @@ diff --git a/dist/index.js b/dist/index.js
    try {
      const piVersion = spawnSync("pi", ["--version"], { encoding: "utf-8" });
      const installed = (String(piVersion.stdout ?? "").trim() || String(piVersion.stderr ?? "").trim()).replace(
-@@ -2848,6 +2898,7 @@
+@@ -2848,6 +2888,7 @@
    }
  }
  function buildStartupInfo(opts) {
@@ -441,7 +533,7 @@ diff --git a/dist/index.js b/dist/index.js
    void opts.fileCommands;
    const md = [];
    try {
-@@ -2980,6 +3031,7 @@
+@@ -2980,6 +3021,7 @@
 
  // src/index.ts
  if (process.argv.includes("--terminal-login")) {
@@ -449,7 +541,7 @@ diff --git a/dist/index.js b/dist/index.js
    const { spawnSync: spawnSync2 } = await import("child_process");
    const cmd = getPiCommand(process.env.PI_ACP_PI_COMMAND);
    const res = spawnSync2(cmd, [], {
-@@ -3019,11 +3071,12 @@
+@@ -3019,11 +3061,12 @@
    }
  });
  var stream = ndJsonStream(input, output);
@@ -464,11 +556,9 @@ diff --git a/dist/index.js b/dist/index.js
    } catch {
    }
    try {
-diff --git a/dist/paperclip-runtime.js b/dist/paperclip-runtime.js
-new file mode 100644
---- /dev/null
+--- a/dist/paperclip-runtime.js
 +++ b/dist/paperclip-runtime.js
-@@ -0,0 +1,261 @@
+@@ -0,0 +1,283 @@
 +/** Source for the helper embedded in patches/pi-acp@0.0.33.patch. */
 +import { StringDecoder } from "node:string_decoder";
 +import { isAbsolute, relative, resolve, sep } from "node:path";
@@ -681,7 +771,7 @@ new file mode 100644
 +  }
 +}
 +
-+/** Sum actual assistant receipts, never context occupancy or estimated cost. */
++/** Sum native usage receipts; preserve missing fields and label catalog pricing. */
 +export class PiTurnUsage {
 +          seen = new Set        ();
 +          total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 };
@@ -689,9 +779,10 @@ new file mode 100644
 +          unknown = new Set                         ();
 +          costObserved = false;
 +          costIncomplete = false;
++          compactionObserved = false;
 +          failed = false;
 +          observed = false;
-+  reset()       { this.seen.clear(); this.total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 }; this.cost = 0; this.unknown.clear(); this.costObserved = false; this.costIncomplete = false; this.failed = false; this.observed = false; }
++  reset()       { this.seen.clear(); this.total = { inputTokens: 0, outputTokens: 0, cachedReadTokens: 0, cachedWriteTokens: 0, totalTokens: 0 }; this.cost = 0; this.unknown.clear(); this.costObserved = false; this.costIncomplete = false; this.compactionObserved = false; this.failed = false; this.observed = false; }
 +  accept(value         )       {
 +    const message = record(value);
 +    if (message.role !== "assistant") return;
@@ -723,9 +814,30 @@ new file mode 100644
 +    } else this.costIncomplete = true;
 +  }
 +
++  markIncomplete()       {
++    for (const name of Object.keys(this.total)) this.unknown.add(name                           );
++    this.costIncomplete = true;
++  }
++
++  acceptCompaction(value         )       {
++    this.compactionObserved = true;
++    const result = value && typeof value === "object" && !Array.isArray(value) ? record(value) : {};
++    if (!result.usage || typeof result.usage !== "object") {
++      // A compaction may consume tokens even if its terminal receipt is absent.
++      // Known assistant counters alone cannot establish the complete turn.
++      this.markIncomplete();
++      return;
++    }
++    const previousFailure = this.failed;
++    this.accept({ role: "assistant", id: "compaction", timestamp: result.firstKeptEntryId,
++      content: [result.tokensBefore, result.summary], usage: result.usage });
++    // A successful summary is not proof that an earlier failed model turn recovered.
++    this.failed = previousFailure;
++  }
++
 +  response()              {
 +    return {
-+      ...(this.observed ? { usage: { ...Object.fromEntries(Object.entries(this.total).filter(([name]) => !this.unknown.has(name                           ))), _meta: { paperclipPi: { provenance: "assistant_message_receipts", ...(this.costObserved && !this.costIncomplete ? { costUsd: this.cost, costSource: "pi_pricing_estimate" } : {}) } } } } : {}),
++      ...(this.observed ? { usage: { ...Object.fromEntries(Object.entries(this.total).filter(([name]) => !this.unknown.has(name                           ))), _meta: { paperclipPi: { provenance: this.compactionObserved ? "assistant_message_and_compaction_receipts" : "assistant_message_receipts", ...(this.costObserved && !this.costIncomplete ? { costUsd: this.cost, costSource: "pi_pricing_estimate" } : {}) } } } } : {}),
 +      ...(this.failed ? { _meta: { jetbrains: { air: { version: 1, sessionFailure: { severity: "error", category: "service", title: "Pi provider request failed" } } } } } : {}),
 +    };
 +  }