arXiv:2610.09123v1 Announce Type: new Abstract: We study cluster recovery in a two-state Gaussian hidden Markov model in the slowly mixing regime, where the transition probability $\delta$ may vanish with the sample size. Temporal persistence creates long homogeneous segments and fundamentally changes the recovery problem relative to the i.i.d. Gaussian mixture benchmark. Rather than being purely adverse, label dependence provides exploitable structure: the statistical difficulty becomes concentrated near the rare transition points, giving rise to recovery regimes governed explicitly by their frequency $\delta$. We first characterize, up to universal constants, the oracle Bayes risk for offline and online clustering. Both problems exhibit a nonstandard polynomial risk regime, but the sequential constraint induces an additional logarithmic localization cost, yielding a genuine online/offline gap. We also study fixed lag prediction with delayed label feedback and identify the effective memory horizon beyond which past labels no longer improve the optimal rate. When the signal direction is unknown and possibly high dimensional, the problem is governed by the effective signal strength \[ r_n^2 = \frac{\|\theta\|^4/\sigma^4} {\|\theta\|^2/\sigma^2+d/n}. \] We derive minimax lower bounds and construct fully adaptive polynomial time procedures attaining the sharp recovery rates. In particular, almost full recovery is possible precisely when $r_n^2\gg\delta$. If $n\delta\gtrsim\log n$, adaptation to both the signal $\theta$ and the transition probability $\delta$ incurs no first order loss, and the sharp exact recovery threshold (under the Hamming loss) is \[ r_n^2 = 2\log(n\delta)\,(1+o(1)). \] Thus the effective complexity of the problem is governed by the number of latent transitions, rather than by the sample size itself.