The Illusion of Superposition? A Principled Analysis of Latent Thinking in Language Models

Latent reasoning via continuous chain-of-thoughts (Latent CoT) has emerged as a promising alternative to discrete CoT reasoning. Operating in continuous space increases expressivity and has been hypothesized to enable \textit{superposition}: the ability to maintain multiple candidate solutions simultaneously within a single representation. Despite theoretical arguments, it remains unclear whether language models actually leverage superposition when given continuous reasoning tokens. We investigate this question across three regimes: a \textit{training-free} regime that constructs latent thoughts as convex combinations of token embeddings, a \textit{fine-tuned} regime where a base model is adapted to produce latent thoughts, and a \textit{from-scratch regime} where a model is trained entirely with latent thoughts to solve a given task. Using \logitlens and entity-level probing to analyze internal representations, we find that only models trained \textit{from scratch} exhibit signs of using superposition. In the training-free and fine-tuned regimes, we find that the superposition either collapses or is not used at all, with models discovering shortcut solutions instead. We argue that this is due to two complementary phenomena: i) pretraining on natural language data biases models to commit to a token in the last layers ii) capacity has a huge effect on which solutions a model favors. Together, our results offer a unified explanation for when and why superposition arises in continuous chain-of-thought reasoning, and identify the conditions under which it collapses.