diff --git a/src/auto-reply/fallback-state.test.ts b/src/auto-reply/fallback-state.test.ts
index fe6873bbe3..f15048a5bb 100644
--- a/src/auto-reply/fallback-state.test.ts
+++ b/src/auto-reply/fallback-state.test.ts
@@ -66,6 +66,19 @@ describe("fallback-state", () => {
     expect(resolved.nextState.activeModel).toBe("deepinfra/moonshotai/Kimi-K2.5");
   });
 
+  it("normalizes fallback reason whitespace for summaries", () => {
+    const resolved = resolveFallbackTransition({
+      selectedProvider: "fireworks",
+      selectedModel: "fireworks/minimax-m2p5",
+      activeProvider: "deepinfra",
+      activeModel: "moonshotai/Kimi-K2.5",
+      attempts: [{ ...baseAttempt, reason: "rate_limit\n\tburst" }],
+      state: {},
+    });
+
+    expect(resolved.reasonSummary).toBe("rate limit burst");
+  });
+
   it("refreshes reason when fallback remains active with same model pair", () => {
     const resolved = resolveFallbackTransition({
       selectedProvider: "fireworks",
diff --git a/src/auto-reply/fallback-state.ts b/src/auto-reply/fallback-state.ts
index d1c7c8d91a..836cf70d91 100644
--- a/src/auto-reply/fallback-state.ts
+++ b/src/auto-reply/fallback-state.ts
@@ -15,7 +15,9 @@ export function normalizeFallbackModelRef(value?: string): string | undefined {
 }
 
 function truncateFallbackReasonPart(value: string, max = FALLBACK_REASON_PART_MAX): string {
-  const text = String(value ?? "").trim();
+  const text = String(value ?? "")
+    .replace(/\s+/g, " ")
+    .trim();
   if (text.length <= max) {
     return text;
   }
diff --git a/src/auto-reply/reply/agent-runner.runreplyagent.test.ts b/src/auto-reply/reply/agent-runner.runreplyagent.test.ts
index 27bdca0791..f87f8279b9 100644
--- a/src/auto-reply/reply/agent-runner.runreplyagent.test.ts
+++ b/src/auto-reply/reply/agent-runner.runreplyagent.test.ts
@@ -509,6 +509,30 @@ describe("runReplyAgent typing (heartbeat)", () => {
     expect(onToolResult).not.toHaveBeenCalled();
   });
 
+  it("retries transient HTTP failures once with timer-driven backoff", async () => {
+    vi.useFakeTimers();
+    let calls = 0;
+    state.runEmbeddedPiAgentMock.mockImplementation(async () => {
+      calls += 1;
+      if (calls === 1) {
+        throw new Error("502 Bad Gateway");
+      }
+      return { payloads: [{ text: "final" }], meta: {} };
+    });
+
+    const { run } = createMinimalRun({
+      typingMode: "message",
+    });
+    const runPromise = run();
+
+    await vi.advanceTimersByTimeAsync(2_499);
+    expect(calls).toBe(1);
+    await vi.advanceTimersByTimeAsync(1);
+    await runPromise;
+    expect(calls).toBe(2);
+    vi.useRealTimers();
+  });
+
   it("announces auto-compaction in verbose mode and tracks count", async () => {
     await withTempStateDir(async (stateDir) => {
       const storePath = path.join(stateDir, "sessions", "sessions.json");
diff --git a/ui/src/ui/app-tool-stream.node.test.ts b/ui/src/ui/app-tool-stream.node.test.ts
index c07bcd167f..4c948ecb75 100644
--- a/ui/src/ui/app-tool-stream.node.test.ts
+++ b/ui/src/ui/app-tool-stream.node.test.ts
@@ -83,4 +83,57 @@ describe("app-tool-stream fallback lifecycle handling", () => {
     expect(host.fallbackStatus).toBeNull();
     vi.useRealTimers();
   });
+
+  it("auto-clears fallback status after toast duration", () => {
+    vi.useFakeTimers();
+    const host = createHost();
+
+    handleAgentEvent(host, {
+      runId: "run-1",
+      seq: 1,
+      stream: "lifecycle",
+      ts: Date.now(),
+      sessionKey: "main",
+      data: {
+        phase: "fallback",
+        selectedProvider: "fireworks",
+        selectedModel: "fireworks/minimax-m2p5",
+        activeProvider: "deepinfra",
+        activeModel: "moonshotai/Kimi-K2.5",
+      },
+    });
+
+    expect(host.fallbackStatus).not.toBeNull();
+    vi.advanceTimersByTime(7_999);
+    expect(host.fallbackStatus).not.toBeNull();
+    vi.advanceTimersByTime(1);
+    expect(host.fallbackStatus).toBeNull();
+    vi.useRealTimers();
+  });
+
+  it("builds previous fallback label from provider + model on fallback_cleared", () => {
+    vi.useFakeTimers();
+    const host = createHost();
+
+    handleAgentEvent(host, {
+      runId: "run-1",
+      seq: 1,
+      stream: "lifecycle",
+      ts: Date.now(),
+      sessionKey: "main",
+      data: {
+        phase: "fallback_cleared",
+        selectedProvider: "fireworks",
+        selectedModel: "fireworks/minimax-m2p5",
+        activeProvider: "fireworks",
+        activeModel: "fireworks/minimax-m2p5",
+        previousActiveProvider: "deepinfra",
+        previousActiveModel: "moonshotai/Kimi-K2.5",
+      },
+    });
+
+    expect(host.fallbackStatus?.phase).toBe("cleared");
+    expect(host.fallbackStatus?.previous).toBe("deepinfra/moonshotai/Kimi-K2.5");
+    vi.useRealTimers();
+  });
 });
diff --git a/ui/src/ui/app-tool-stream.ts b/ui/src/ui/app-tool-stream.ts
index cd57ee4a59..c7f3f9085b 100644
--- a/ui/src/ui/app-tool-stream.ts
+++ b/ui/src/ui/app-tool-stream.ts
@@ -339,8 +339,8 @@ function handleLifecycleFallbackEvent(host: CompactionHost, payload: AgentEventP
     resolveModelLabel(data.activeProvider, data.activeModel) ??
     resolveModelLabel(data.toProvider, data.toModel);
   const previous =
-    toTrimmedString(data.previousActiveModel) ??
-    resolveModelLabel(data.previousActiveProvider, data.previousActiveModel);
+    resolveModelLabel(data.previousActiveProvider, data.previousActiveModel) ??
+    toTrimmedString(data.previousActiveModel);
   if (!selected || !active) {
     return;
   }