I discovered that, when writing short stories that exceed the token limit, it can be useful (and cheaper!) to work with an initial summary of “what happened before”. The engine successfully interprets this as background information if you put it between brackets. The plot elements and character info will then pop up in various forms in the new chapter. It could look something like this:
(What happened in chapter one and two: [here you write a summary of the earlier chapter])
Chapter three.
[A few sentences to introduce the new scene, then press Ctrl+Ent and let the magic happen]
Let me know if any of you have other ideas to “store” previous world knowledge in the playground.