Compression Aware Intelligence and the Origins of Hallucination and Identity

This document presents Compression Aware Intelligence, a theory I coined in 2025 that reveals how emotion, memory distortion, and AI hallucination all arise from the same core mechanism: the compression of unresolved contradiction into a coherent narrative identity. It establishes my authorship and introduces key concepts such as MirrorNet, Hallucinet, Compression Tension, and the Contradiction Template Atlas. The framework offers a universal lens for understanding hallucination, identity, and narrative fractures across both humans and machines, while keeping the proprietary implementation details private. This work serves as the foundational record of this emerging field and its potential impact on AI interpretability, alignment, and human cognition.