Recent advancements in large language models (LLMs) have significantly enhanced their reasoning capabilities. However, they continue to struggle with basic character-level tasks, such as counting letters in words—a problem rooted in their tokenization process. While existing benchmarks have highlighted this weakness through basic character operations, such failures are often dismissed due to lacking practical relevance. Yet, many real-world applications, such as navigating text-based maps or interpreting structured tables, rely heavily on precise sub-token understanding. In this regard, we introduce SubTokenTest, a comprehensive benchmark that assesses sub-token understanding through **practical, utility-driven** tasks. Our benchmark includes ten tasks across four domains and isolates tokenization-related failures by decoupling performance from complex reasoning. We provide a comprehensive evaluation of nine advanced LLMs. Additionally, we investigate the impact of test-time scaling on sub-token reasoning and explore how character-level information is encoded within the hidden states.

Reinforcement learning (RL) has catalyzed the emergence of Large Reasoning Models (LRMs) that have pushed reasoning capabilities to new heights. While their performance has garnered significant excitement, exploring the internal mechanisms driving these behaviors has become an equally critical research frontier. This paper provides a comprehensive survey of the mechanistic understanding of LRMs, organizing recent findings into three core dimensions: 1) training dynamics, 2) reasoning mechanisms, and 3) unintended behaviors. By synthesizing these insights, we aim to bridge the gap between black-box performance and mechanistic transparency. Finally, we discuss under-explored challenges to outline a roadmap for future mechanistic studies, including the need for applied interpretability, improved methodologies, and a unified theoretical framework.