Claude Code's Memory: 4 Layers of Complexity, Still Just Grep and a 200-Line Cap

Claude Code's memory system? Grep search, a 200-line index cap, and zero cross-agent sharing. After studying the leaked source, it's way more primitive than the hype suggests. It does a fair amount of work — multiple layers, even a mechanism that lets the agent "dream" to consolidate memories. Sounds sophisticated. But peel it open and you find an agent trapped in its own sandbox. Memory can't leave, and it doesn't last long. Let's break it down layer by layer. Layer 1: CLAUDE.md — Rules You Write for the Agent CLAUDE.md is a Markdown file you create and place in your project root. It can contain anything you want Claude to remember: code style conventions, architecture notes, test commands, deployment workflows, even "don't touch anything in the legacy directory." Every session, Claude Code loads the entire file into context. Shorter files get followed better. It supports three scopes: project-level CLAUDE.md in the project root, personal-level at ~/.claude/CLAUDE.md, and organization