diff --git a/requirements.txt b/requirements.txt
index 3c3a6714..fd28cbab 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -9,6 +9,7 @@ tokenizers
 orjson
 redis>=5.0.0
 xxhash>=3.0.0
+lz4>=4.0.0
 # Tree-sitter 0.25+ with individual language packages
 tree_sitter>=0.25.0
 tree_sitter_python>=0.23.0
diff --git a/scripts/indexing_admin.py b/scripts/indexing_admin.py
index 500b33d4..52a939ae 100644
--- a/scripts/indexing_admin.py
+++ b/scripts/indexing_admin.py
@@ -202,7 +202,16 @@ def _copy_repo_state_for_clone(
 # Cache with TTL support
 _COLLECTION_SCHEMA_CACHE: Dict[str, Dict[str, Any]] = {}
 _COLLECTION_SCHEMA_CACHE_TS: Dict[str, float] = {}  # Track cache timestamps
-_COLLECTION_SCHEMA_CACHE_TTL = float(os.environ.get("SCHEMA_CACHE_TTL_SECS", "300"))  # 5 min default
+try:
+    _ttl_raw = float(os.environ.get("SCHEMA_CACHE_TTL_SECS", "300"))
+    # Validate TTL is finite and positive
+    import math
+    if not math.isfinite(_ttl_raw) or _ttl_raw <= 0:
+        _COLLECTION_SCHEMA_CACHE_TTL = 300.0
+    else:
+        _COLLECTION_SCHEMA_CACHE_TTL = _ttl_raw
+except (ValueError, TypeError):
+    _COLLECTION_SCHEMA_CACHE_TTL = 300.0  # 5 min default
 _SNAPSHOT_REFRESHED: Set[str] = set()
 _MAPPING_INDEX_CACHE: Dict[str, Any] = {"ts": 0.0, "work_dir": "", "value": {}}
 
diff --git a/scripts/upload_service.py b/scripts/upload_service.py
index ac2c2c23..341f2cd5 100644
--- a/scripts/upload_service.py
+++ b/scripts/upload_service.py
@@ -908,9 +908,13 @@ async def admin_acl_grant(
 async def admin_collections_status(request: Request):
     _require_admin_session(request)
     try:
-        collections = list_collections(include_deleted=False)
+        if AUTH_ENABLED:
+            collections = list_collections(include_deleted=False)
+        else:
+            # Demo mode: get collections directly from Qdrant
+            collections = list_qdrant_collections()
     except AuthDisabledError:
-        raise HTTPException(status_code=404, detail="Auth disabled")
+        collections = list_qdrant_collections()
     except Exception:
         raise HTTPException(status_code=500, detail="Failed to load collections")
 
@@ -934,7 +938,11 @@ async def event_generator():
                 break
 
             try:
-                collections = list_collections(include_deleted=False)
+                if AUTH_ENABLED:
+                    collections = list_collections(include_deleted=False)
+                else:
+                    # Demo mode: get collections directly from Qdrant
+                    collections = list_qdrant_collections()
                 enriched = await asyncio.to_thread(
                     lambda: build_admin_collections_view(collections=collections, work_dir=WORK_DIR)
                 )
@@ -945,6 +953,19 @@ async def event_generator():
                     last_data = current_data
                     yield f"data: {json.dumps({'type': 'full', 'collections': enriched}, default=str)}\n\n"
 
+            except AuthDisabledError:
+                # Fallback to Qdrant collections
+                try:
+                    collections = list_qdrant_collections()
+                    enriched = await asyncio.to_thread(
+                        lambda: build_admin_collections_view(collections=collections, work_dir=WORK_DIR)
+                    )
+                    current_data = json.dumps(enriched, default=str)
+                    if current_data != last_data:
+                        last_data = current_data
+                        yield f"data: {json.dumps({'type': 'full', 'collections': enriched}, default=str)}\n\n"
+                except Exception as e:
+                    yield f"data: {json.dumps({'type': 'error', 'message': str(e)})}\n\n"
             except Exception as e:
                 yield f"data: {json.dumps({'type': 'error', 'message': str(e)})}\n\n"
 
diff --git a/scripts/watch_index_core/processor.py b/scripts/watch_index_core/processor.py
index 685b688f..4f03d78f 100644
--- a/scripts/watch_index_core/processor.py
+++ b/scripts/watch_index_core/processor.py
@@ -2,7 +2,6 @@
 
 from __future__ import annotations
 
-import hashlib
 import logging
 import os
 import subprocess
@@ -10,6 +9,7 @@
 from datetime import datetime
 from pathlib import Path
 from typing import Dict, List, Optional
+import xxhash
 
 import scripts.ingest_code as idx
 from scripts.workspace_state import (
@@ -128,7 +128,7 @@ def _maybe_handle_staging_file(
     if not (is_staging_enabled() and state_env and collection):
         return False
 
-    _text, file_hash = _read_text_and_sha1(path)
+    _text, file_hash = _read_text_and_hash(path)
     if file_hash:
         try:
             cached_hash = get_cached_file_hash(str(path), repo_name) if repo_name else None
@@ -348,17 +348,15 @@ def _process_paths(
             logger.debug(f"Suppressed exception: {e}")
 
 
-def _read_text_and_sha1(path: Path) -> tuple[Optional[str], str]:
+def _read_text_and_hash(path: Path) -> tuple[Optional[str], str]:
+    """Read file text and compute xxhash64 for consistency with pipeline."""
     try:
         text = path.read_text(encoding="utf-8", errors="ignore")
     except Exception:
         text = None
     if not text:
         return text, ""
-    try:
-        file_hash = hashlib.sha1(text.encode("utf-8", errors="ignore")).hexdigest()
-    except Exception:
-        file_hash = ""
+    file_hash = xxhash.xxh64(text.encode("utf-8", errors="ignore")).hexdigest()
     return text, file_hash
 
 
@@ -378,7 +376,7 @@ def _run_indexing_strategy(
     except Exception as e:
         logger.debug(f"Suppressed exception: {e}")
 
-    text, file_hash = _read_text_and_sha1(path)
+    text, file_hash = _read_text_and_hash(path)
     ok = False
     if text is not None:
         try:
diff --git a/scripts/workspace_state.py b/scripts/workspace_state.py
index 55f2fa5c..14fcf105 100644
--- a/scripts/workspace_state.py
+++ b/scripts/workspace_state.py
@@ -144,20 +144,66 @@ def _redis_retry(fn, retries: int = 2, delay: float = 0.1):
     raise last_err  # type: ignore
 
 
+# LZ4 compression for Redis state storage
+# Provides ~50-70% memory reduction with minimal CPU overhead
+_LZ4_AVAILABLE = False
+try:
+    import lz4.frame as lz4_frame
+    _LZ4_AVAILABLE = True
+except ImportError:
+    lz4_frame = None  # type: ignore
+
+# Prefix to identify LZ4-compressed values in Redis
+_LZ4_PREFIX = b"LZ4:"
+
+def _redis_compress(data: bytes) -> bytes:
+    """Compress data with LZ4 if available, return with prefix."""
+    if not _LZ4_AVAILABLE or lz4_frame is None:
+        return data
+    try:
+        compressed = lz4_frame.compress(data, compression_level=0)  # fastest
+        # Only use compression if it actually saves space
+        if len(compressed) + len(_LZ4_PREFIX) < len(data):
+            return _LZ4_PREFIX + compressed
+        return data
+    except Exception:
+        return data
+
+def _redis_decompress(data: bytes) -> bytes:
+    """Decompress LZ4 data if prefixed, otherwise return as-is."""
+    if not data:
+        return data
+    if data.startswith(_LZ4_PREFIX):
+        if not _LZ4_AVAILABLE or lz4_frame is None:
+            logger.warning("LZ4 compressed data found but lz4 not available")
+            return data
+        try:
+            return lz4_frame.decompress(data[len(_LZ4_PREFIX):])
+        except Exception as e:
+            logger.debug(f"LZ4 decompress failed: {e}")
+            return data
+    return data
+
+
 def _redis_get_json(kind: str, path: Path) -> Optional[Dict[str, Any]]:
     client = _get_redis_client()
     if client is None:
         return None
     key = _redis_key_for_path(kind, path)
     try:
-        raw = _redis_retry(lambda: client.get(key))
+        # Get raw bytes for decompression
+        raw = _redis_retry(lambda: client.execute_command("GET", key))
     except Exception as e:
         logger.debug(f"Redis get failed for {key}: {e}")
         return None
     if not raw:
         return None
     try:
-        obj = json.loads(raw)
+        # Handle both string and bytes responses
+        if isinstance(raw, str):
+            raw = raw.encode("utf-8")
+        decompressed = _redis_decompress(raw)
+        obj = json.loads(decompressed.decode("utf-8"))
     except Exception as e:
         logger.debug(f"Redis JSON decode failed for {key}: {e}")
         return None
@@ -172,12 +218,13 @@ def _redis_set_json(kind: str, path: Path, obj: Dict[str, Any]) -> bool:
         return False
     key = _redis_key_for_path(kind, path)
     try:
-        payload = json.dumps(obj, ensure_ascii=False)
+        payload = json.dumps(obj, ensure_ascii=False).encode("utf-8")
+        compressed = _redis_compress(payload)
     except Exception as e:
-        logger.debug(f"Failed to JSON serialize redis payload for {key}: {e}")
+        logger.debug(f"Failed to serialize/compress redis payload for {key}: {e}")
         return False
     try:
-        _redis_retry(lambda: client.set(key, payload))
+        _redis_retry(lambda: client.execute_command("SET", key, compressed))
         return True
     except Exception as e:
         logger.debug(f"Redis set failed for {key}: {e}")
diff --git a/tests/test_watch_index_cache.py b/tests/test_watch_index_cache.py
index c5065af1..0a5df87b 100644
--- a/tests/test_watch_index_cache.py
+++ b/tests/test_watch_index_cache.py
@@ -38,10 +38,10 @@ def test_processor_handles_cache_read_errors(monkeypatch, tmp_path):
     test_file = tmp_path / "test.txt"
     test_file.write_text("test content", encoding="utf-8")
     
-    # Exercise _read_text_and_sha1 - should handle errors gracefully and return content + hash
-    text, sha1 = proc_mod._read_text_and_sha1(test_file)
+    # Exercise _read_text_and_hash - should handle errors gracefully and return content + hash
+    text, file_hash = proc_mod._read_text_and_hash(test_file)
     assert text == "test content"
-    assert sha1 is not None and len(sha1) == 40  # SHA1 hex length
+    assert file_hash is not None and len(file_hash) == 16  # xxhash64 hex length
 
 
 def test_handler_move_event_handles_cache_errors(monkeypatch, tmp_path):