diff --git a/apps/web/src/components/v2/actions-renderer.tsx b/apps/web/src/components/v2/actions-renderer.tsx
index 922f620b..a87fc9f5 100644
--- a/apps/web/src/components/v2/actions-renderer.tsx
+++ b/apps/web/src/components/v2/actions-renderer.tsx
@@ -31,7 +31,8 @@ import { HumanResponse } from "@langchain/langgraph/prebuilt";
 import { LoadingActionsCardContent } from "./thread-view-loading";
 import { Interrupt } from "../thread/messages/interrupt";
 import { AlertCircle } from "lucide-react";
-import { Alert, AlertTitle, AlertDescription } from "../ui/alert";
+import { ErrorState } from "./types";
+import { CollapsibleAlert } from "./collapsible-alert";
 
 interface AcceptedPlanEventData {
   planTitle: string;
@@ -118,7 +119,7 @@ export function ActionsRenderer<State extends PlannerGraphState | GraphState>({
   );
   const joinedRunId = useRef<string | undefined>(undefined);
   const [streamLoading, setStreamLoading] = useState(false);
-  const [errorMessage, setErrorMessage] = useState("");
+  const [errorState, setErrorState] = useState<ErrorState | null>(null);
 
   const stream = useStream<State>({
     apiUrl: process.env.NEXT_PUBLIC_API_URL,
@@ -135,13 +136,24 @@ export function ActionsRenderer<State extends PlannerGraphState | GraphState>({
 
   useEffect(() => {
     if (stream.error) {
-      const errorMessage =
+      const rawErrorMessage =
         typeof stream.error === "object" && "message" in stream.error
           ? (stream.error.message as string)
           : "An unknown error occurred in the manager";
-      setErrorMessage(errorMessage);
+
+      if (rawErrorMessage.includes("overloaded_error")) {
+        setErrorState({
+          message:
+            "An Anthropic overloaded error occurred. This error occurs when Anthropic APIs experience high traffic across all users.",
+          details: rawErrorMessage,
+        });
+      } else {
+        setErrorState({
+          message: rawErrorMessage,
+        });
+      }
     } else {
-      setErrorMessage("");
+      setErrorState(null);
     }
   }, [stream.error]);
 
@@ -319,12 +331,12 @@ export function ActionsRenderer<State extends PlannerGraphState | GraphState>({
           thread={stream as UseStream<Record<string, unknown>>}
         />
       ) : null}
-      {errorMessage ? (
-        <Alert variant="destructive">
-          <AlertCircle className="size-4" />
-          <AlertTitle>An error occurred:</AlertTitle>
-          <AlertDescription>{errorMessage}</AlertDescription>
-        </Alert>
+      {errorState ? (
+        <CollapsibleAlert
+          variant="destructive"
+          errorState={errorState}
+          icon={<AlertCircle className="size-4" />}
+        />
       ) : null}
     </div>
   );
diff --git a/apps/web/src/components/v2/collapsible-alert.tsx b/apps/web/src/components/v2/collapsible-alert.tsx
new file mode 100644
index 00000000..652e7af2
--- /dev/null
+++ b/apps/web/src/components/v2/collapsible-alert.tsx
@@ -0,0 +1,111 @@
+import * as React from "react";
+import { useState } from "react";
+import { motion, AnimatePresence } from "framer-motion";
+import { ChevronDown, ChevronUp } from "lucide-react";
+import { cva, type VariantProps } from "class-variance-authority";
+import { cn } from "@/lib/utils";
+import { ErrorState } from "./types";
+
+const alertVariants = cva(
+  "relative w-full rounded-lg border px-4 py-3 text-sm grid has-[>svg]:grid-cols-[calc(var(--spacing)*4)_1fr] grid-cols-[0_1fr] has-[>svg]:gap-x-3 gap-y-0.5 items-start [&>svg]:size-4 [&>svg]:translate-y-0.5 [&>svg]:text-current",
+  {
+    variants: {
+      variant: {
+        default: "bg-card text-card-foreground border-border",
+        destructive:
+          "border-destructive/50 bg-destructive/10 text-destructive dark:border-red-400 dark:bg-red-950/50 dark:text-red-300 [&>svg]:text-destructive dark:[&>svg]:text-red-400",
+        warning:
+          "border-yellow-500/50 bg-yellow-50 text-yellow-900 dark:border-yellow-500 dark:bg-yellow-950 dark:text-yellow-100 [&>svg]:text-yellow-600 dark:[&>svg]:text-yellow-400",
+        info: "border-blue-500/50 bg-blue-50 text-blue-900 dark:border-blue-500 dark:bg-blue-950 dark:text-blue-100 [&>svg]:text-blue-600 dark:[&>svg]:text-blue-400",
+        success:
+          "border-green-500/50 bg-green-50 text-green-900 dark:border-green-500 dark:bg-green-950 dark:text-green-100 [&>svg]:text-green-600 dark:[&>svg]:text-green-400",
+      },
+    },
+    defaultVariants: {
+      variant: "default",
+    },
+  },
+);
+
+interface CollapsibleAlertProps
+  extends React.ComponentProps<"div">,
+    VariantProps<typeof alertVariants> {
+  errorState: ErrorState;
+  icon?: React.ReactNode;
+  title?: string;
+}
+
+function CollapsibleAlert({
+  className,
+  variant,
+  errorState,
+  icon,
+  title = "An error occurred:",
+  ...props
+}: CollapsibleAlertProps) {
+  const [isExpanded, setIsExpanded] = useState(false);
+  const hasDetails = Boolean(errorState.details);
+
+  return (
+    <div
+      data-slot="alert"
+      data-variant={variant}
+      role="alert"
+      className={cn(alertVariants({ variant }), className)}
+      {...props}
+    >
+      {icon}
+      <div className="col-start-2 space-y-1">
+        <div className="line-clamp-1 min-h-4 font-medium tracking-tight">
+          {title}
+        </div>
+        <div className="text-muted-foreground data-[variant=destructive]:text-destructive/90 text-sm data-[variant=info]:text-blue-800 data-[variant=success]:text-green-800 data-[variant=warning]:text-yellow-800 dark:data-[variant=destructive]:text-red-200 dark:data-[variant=info]:text-blue-200 dark:data-[variant=success]:text-green-200 dark:data-[variant=warning]:text-yellow-200 [&_p]:leading-relaxed">
+          {errorState.message}
+        </div>
+
+        {hasDetails && (
+          <>
+            <AnimatePresence initial={false}>
+              {isExpanded && (
+                <motion.div
+                  key="details"
+                  initial={{ opacity: 0, height: 0 }}
+                  animate={{ opacity: 1, height: "auto" }}
+                  exit={{ opacity: 0, height: 0 }}
+                  transition={{ duration: 0.2, ease: "easeInOut" }}
+                  className="overflow-hidden"
+                >
+                  <div className="mt-2 rounded border border-current/20 bg-current/5 p-2 font-mono text-xs">
+                    {errorState.details}
+                  </div>
+                </motion.div>
+              )}
+            </AnimatePresence>
+
+            <motion.button
+              onClick={() => setIsExpanded(!isExpanded)}
+              className="flex items-center gap-1 text-xs text-current/70 transition-colors duration-200 hover:text-current"
+              initial={{ scale: 1 }}
+              whileHover={{ scale: 1.02 }}
+              whileTap={{ scale: 0.98 }}
+            >
+              {isExpanded ? (
+                <>
+                  <ChevronUp className="size-3" />
+                  Hide details
+                </>
+              ) : (
+                <>
+                  <ChevronDown className="size-3" />
+                  Show details
+                </>
+              )}
+            </motion.button>
+          </>
+        )}
+      </div>
+    </div>
+  );
+}
+
+export { CollapsibleAlert };
diff --git a/apps/web/src/components/v2/manager-chat.tsx b/apps/web/src/components/v2/manager-chat.tsx
index 45950b1e..84895ae5 100644
--- a/apps/web/src/components/v2/manager-chat.tsx
+++ b/apps/web/src/components/v2/manager-chat.tsx
@@ -19,7 +19,8 @@ import { Button } from "../ui/button";
 import { cn } from "@/lib/utils";
 import { isAIMessageSDK } from "@/lib/langchain-messages";
 import { BasicMarkdownText } from "../thread/markdown-text";
-import { Alert, AlertDescription, AlertTitle } from "../ui/alert";
+import { ErrorState } from "./types";
+import { CollapsibleAlert } from "./collapsible-alert";
 
 function MessageCopyButton({ content }: { content: string }) {
   const [copied, setCopied] = useState(false);
@@ -75,7 +76,7 @@ interface ManagerChatProps {
   handleSendMessage: () => void;
   isLoading: boolean;
   cancelRun: () => void;
-  errorMessage?: string;
+  errorState?: ErrorState | null;
 }
 
 function extractResponseFromMessage(message: Message): string {
@@ -98,7 +99,7 @@ export function ManagerChat({
   handleSendMessage,
   isLoading,
   cancelRun,
-  errorMessage,
+  errorState,
 }: ManagerChatProps) {
   return (
     <div className="border-border bg-muted/30 flex h-full w-1/3 flex-col border-r dark:bg-gray-950">
@@ -147,12 +148,12 @@ export function ManagerChat({
                     </div>
                   );
                 })}
-                {errorMessage ? (
-                  <Alert variant="destructive">
-                    <AlertCircle className="size-4" />
-                    <AlertTitle>An error occurred:</AlertTitle>
-                    <AlertDescription>{errorMessage}</AlertDescription>
-                  </Alert>
+                {errorState ? (
+                  <CollapsibleAlert
+                    variant="destructive"
+                    errorState={errorState}
+                    icon={<AlertCircle className="size-4" />}
+                  />
                 ) : null}
               </>
             }
diff --git a/apps/web/src/components/v2/thread-view.tsx b/apps/web/src/components/v2/thread-view.tsx
index 46ced88b..9594cb4d 100644
--- a/apps/web/src/components/v2/thread-view.tsx
+++ b/apps/web/src/components/v2/thread-view.tsx
@@ -30,6 +30,7 @@ import {
 } from "../../utils/scroll-utils";
 import { ManagerChat } from "./manager-chat";
 import { CancelStreamButton } from "./cancel-stream-button";
+import { ErrorState } from "./types";
 
 interface ThreadViewProps {
   stream: ReturnType<typeof useStream<ManagerGraphState>>;
@@ -52,7 +53,7 @@ export function ThreadView({
     useState<ManagerGraphState["plannerSession"]>();
   const [programmerSession, setProgrammerSession] =
     useState<ManagerGraphState["programmerSession"]>();
-  const [errorMessage, setErrorMessage] = useState("");
+  const [errorState, setErrorState] = useState<ErrorState | null>(null);
 
   useEffect(() => {
     if (
@@ -72,13 +73,24 @@ export function ThreadView({
 
   useEffect(() => {
     if (stream.error) {
-      const errorMessage =
+      const rawErrorMessage =
         typeof stream.error === "object" && "message" in stream.error
           ? (stream.error.message as string)
           : "An unknown error occurred in the manager";
-      setErrorMessage(errorMessage);
+
+      if (rawErrorMessage.includes("overloaded_error")) {
+        setErrorState({
+          message:
+            "An Anthropic overloaded error occurred. This error occurs when Anthropic APIs experience high traffic across all users.",
+          details: rawErrorMessage,
+        });
+      } else {
+        setErrorState({
+          message: rawErrorMessage,
+        });
+      }
     } else {
-      setErrorMessage("");
+      setErrorState(null);
     }
   }, [stream.error]);
 
@@ -183,7 +195,7 @@ export function ThreadView({
           handleSendMessage={handleSendMessage}
           isLoading={stream.isLoading}
           cancelRun={cancelRun}
-          errorMessage={errorMessage}
+          errorState={errorState}
         />
         {/* Right Side - Actions & Plan */}
         <div className="flex h-full flex-1 flex-col">
diff --git a/apps/web/src/components/v2/types.ts b/apps/web/src/components/v2/types.ts
index 16fd122f..f9382721 100644
--- a/apps/web/src/components/v2/types.ts
+++ b/apps/web/src/components/v2/types.ts
@@ -1,6 +1,11 @@
 import { ThreadUIStatus } from "@/lib/schemas/thread-status";
 import { TaskPlan } from "@open-swe/shared/open-swe/types";
 
+export interface ErrorState {
+  message: string;
+  details?: string;
+}
+
 export interface ThreadMetadata {
   id: string;
   title: string;