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Existing approaches show promising results in terms of hallucination correction, but still suffer from a main limitation: they apply corrections indiscriminately to every token, corrupting also the originally correct generations. To overcome this drawback, we propose PCNET, a Probabilistic Circuit trained as a tractable density estimator over the LLM residual stream. The method detects hallucinations as geometric anomalies on the factual manifold, which is done via exact Negative Log-Likelihood computation, hence without the need for sampling, external verifiers, or weight modifications, as in existing techniques. To demonstrate its effectiveness, we exploit PCNET as a dynamic gate that distinguishes hallucinated from factual hidden states at each decoding step. This triggers our second main contri","title":"Hallucination as an Anomaly: Dynamic Intervention via Probabilistic Circuits","url":"https://arxiv.org/abs/2605.05953","vendor":"arxiv_cs_ai"},"summary":"arXiv:2605.05953v1 Announce Type: cross \nAbstract: One of the most critical challenges in Large Language Models is their tendency to hallucinate, i.e., produce factually incorrect responses. Existing approaches show promising results in terms of hallucination correction, but still suffer from a main limitation: they apply corrections indiscriminately to every token, corrupting also the originally correct generations. To overcome this drawback, we propose PCNET, a Probabilistic Circuit trained as a tractable density estimator over the LLM residual stream. The method detects hallucinations as geometric anomalies on the factual manifold, which is done via exact Negative Log-Likelihood computation, hence without the need for sampling, external verifiers, or weight modifications, as in existing techniques. To demonstrate its effectiveness, we exploit PCNET as a dynamic gate that distinguishes hallucinated from factual hidden states at each decoding step. 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