Large language models (LLMs) face significant challenges with needle-in-ahaystack tasks, where relevant information ("the needle") must be drawn from a large pool of irrelevant context ("the haystack"). Previous studies have highlighted positional bias and distractor quantity as critical factors affecting model performance, yet the influence of gold context size, the length of the answer-containing document, has received little attention. We present the first systematic study of gold context size in long-context question answering, spanning three diverse benchmarks (general knowledge, biomedical reasoning, and mathematical reasoning), eleven state-of-the-art LLMs (including recent reasoning models), and more than 150K controlled runs. Our experiments reveal that LLM performance drops sharply when the gold context is shorter, i.e., smaller gold contexts consistently degrade model performance and amplify positional sensitivity, posing a major challenge for agentic systems that must integrate scattered, fine-grained information of varying lengths. This effect persists under rigorous confounder analysis: even after controlling for gold context position, answer token repetition, gold-to-distractor ratio, distractor volume, and domain specificity, gold context size remains a decisive, independent predictor of success. Our work provides clear insights to guide the design of robust, context-aware LLM-driven systems.