diff --git a/readline/errors.go b/readline/errors.go
index 83c26e86e..bb3fbd473 100644
--- a/readline/errors.go
+++ b/readline/errors.go
@@ -6,9 +6,6 @@ import (
 
 var ErrInterrupt = errors.New("Interrupt")
 
-// ErrExpandOutput is returned when user presses Ctrl+O to expand tool output
-var ErrExpandOutput = errors.New("ExpandOutput")
-
 type InterruptError struct {
 	Line []rune
 }
diff --git a/readline/readline.go b/readline/readline.go
index 8bbef66fd..c12327472 100644
--- a/readline/readline.go
+++ b/readline/readline.go
@@ -206,9 +206,6 @@ func (i *Instance) Readline() (string, error) {
 			buf.DeleteBefore()
 		case CharCtrlL:
 			buf.ClearScreen()
-		case CharCtrlO:
-			// Ctrl+O - expand tool output
-			return "", ErrExpandOutput
 		case CharCtrlW:
 			buf.DeleteWord()
 		case CharCtrlZ:
diff --git a/x/cmd/run.go b/x/cmd/run.go
index 178659e9f..8dd2f6bc1 100644
--- a/x/cmd/run.go
+++ b/x/cmd/run.go
@@ -137,13 +137,6 @@ type RunOptions struct {
 
 	// YoloMode skips all tool approval prompts
 	YoloMode bool
-
-	// LastToolOutput stores the full output of the last tool execution
-	// for Ctrl+O expansion. Updated by Chat(), read by caller.
-	LastToolOutput *string
-
-	// LastToolOutputTruncated stores the truncated version shown inline
-	LastToolOutputTruncated *string
 }
 
 // Chat runs an agent chat loop with tool support.
@@ -446,25 +439,15 @@ func Chat(ctx context.Context, opts RunOptions) (*api.Message, error) {
 		toolSuccess:
 
 			// Display tool output (truncated for display)
-			truncatedOutput := ""
 			if toolResult != "" {
 				output := toolResult
 				if len(output) > 300 {
-					output = output[:300] + "... (truncated, press Ctrl+O to expand)"
+					output = output[:300] + "... (truncated)"
 				}
-				truncatedOutput = output
 				// Show result in grey, indented
 				fmt.Fprintf(os.Stderr, "\033[90m  %s\033[0m\n", strings.ReplaceAll(output, "\n", "\n  "))
 			}
 
-			// Store full and truncated output for Ctrl+O toggle
-			if opts.LastToolOutput != nil {
-				*opts.LastToolOutput = toolResult
-			}
-			if opts.LastToolOutputTruncated != nil {
-				*opts.LastToolOutputTruncated = truncatedOutput
-			}
-
 			// Truncate output to prevent context overflow
 			toolResultForLLM := truncateToolOutput(toolResult, opts.Model)
 
@@ -690,11 +673,6 @@ func GenerateInteractive(cmd *cobra.Command, modelName string, wordWrap bool, op
 	var messages []api.Message
 	var sb strings.Builder
 
-	// Track last tool output for Ctrl+O toggle
-	var lastToolOutput string
-	var lastToolOutputTruncated string
-	var toolOutputExpanded bool
-
 	for {
 		line, err := scanner.Readline()
 		switch {
@@ -707,20 +685,6 @@ func GenerateInteractive(cmd *cobra.Command, modelName string, wordWrap bool, op
 			}
 			sb.Reset()
 			continue
-		case errors.Is(err, readline.ErrExpandOutput):
-			// Ctrl+O pressed - toggle between expanded and collapsed tool output
-			if lastToolOutput == "" {
-				fmt.Fprintf(os.Stderr, "\033[90mNo tool output to expand\033[0m\n")
-			} else if toolOutputExpanded {
-				// Currently expanded, show truncated
-				fmt.Fprintf(os.Stderr, "\033[90m  %s\033[0m\n", strings.ReplaceAll(lastToolOutputTruncated, "\n", "\n  "))
-				toolOutputExpanded = false
-			} else {
-				// Currently collapsed, show full
-				fmt.Fprintf(os.Stderr, "\033[90m  %s\033[0m\n", strings.ReplaceAll(lastToolOutput, "\n", "\n  "))
-				toolOutputExpanded = true
-			}
-			continue
 		case err != nil:
 			return err
 		}
@@ -759,21 +723,17 @@ func GenerateInteractive(cmd *cobra.Command, modelName string, wordWrap bool, op
 			messages = append(messages, newMessage)
 
 			opts := RunOptions{
-				Model:                   modelName,
-				Messages:                messages,
-				WordWrap:                wordWrap,
-				Options:                 options,
-				Think:                   think,
-				HideThinking:            hideThinking,
-				KeepAlive:               keepAlive,
-				Tools:                   toolRegistry,
-				Approval:                approval,
-				YoloMode:                yoloMode,
-				LastToolOutput:          &lastToolOutput,
-				LastToolOutputTruncated: &lastToolOutputTruncated,
+				Model:        modelName,
+				Messages:     messages,
+				WordWrap:     wordWrap,
+				Options:      options,
+				Think:        think,
+				HideThinking: hideThinking,
+				KeepAlive:    keepAlive,
+				Tools:        toolRegistry,
+				Approval:     approval,
+				YoloMode:     yoloMode,
 			}
-			// Reset expanded state for new tool execution
-			toolOutputExpanded = false
 
 			assistant, err := Chat(cmd.Context(), opts)
 			if err != nil {