diff --git a/src/status-formatter.js b/src/status-formatter.js
index 21c0706..c8dce8f 100644
--- a/src/status-formatter.js
+++ b/src/status-formatter.js
@@ -42,12 +42,12 @@ function format(sessionState, opts = {}) {
   const elapsed = formatElapsed(Date.now() - sessionState.startTime);
   const agentId = sessionState.agentId || extractAgentId(sessionState.sessionKey);
   const statusPrefix = statusIcon(sessionState.status);
-  lines.push(`${indent}${statusPrefix} ${agentId} | ${elapsed}`);
+  lines.push(`${indent}**${statusPrefix}** \`${agentId}\` | ${elapsed}`);
 
   // Status lines (trimmed to maxLines, most recent)
   const statusLines = (sessionState.lines || []).slice(-maxLines);
   for (const line of statusLines) {
-    lines.push(`${indent}  ${truncateLine(line)}`);
+    lines.push(`${indent}${formatStatusLine(truncateLine(line))}`);
   }
 
   // Child sessions (sub-agents)
@@ -63,13 +63,14 @@ function format(sessionState, opts = {}) {
     const tokenStr = sessionState.tokenCount
       ? ` | ${formatTokens(sessionState.tokenCount)} tokens`
       : '';
-    lines.push(`${indent}  [${sessionState.status.toUpperCase()}] ${elapsed}${tokenStr}`);
+    lines.push(`${indent}**[${sessionState.status.toUpperCase()}]** ${elapsed}${tokenStr}`);
   }
 
-  // Wrap in code block at top level so it looks distinct from normal messages
+  // Wrap in blockquote at top level — visually distinct (left border),
+  // never collapses like code blocks do, supports inline markdown
   var body = lines.join('\n');
   if (depth === 0) {
-    body = '```\n' + body + '\n```';
+    body = body.split('\n').map(function (l) { return '> ' + l; }).join('\n');
   }
   return body;
 }
@@ -120,6 +121,24 @@ function statusIcon(status) {
   }
 }
 
+/**
+ * Format a status line with inline markdown.
+ * Tool calls get inline code formatting; thinking text stays plain.
+ * @param {string} line
+ * @returns {string}
+ */
+function formatStatusLine(line) {
+  // Tool call lines: "toolName: arguments [OK]" or "toolName: label"
+  var match = line.match(/^(\S+?): (.+?)( \[OK\]| \[ERR\])?$/);
+  if (match) {
+    var marker = match[3] || '';
+    return '`' + match[1] + ':` ' + match[2] + marker;
+  }
+  // Thinking text — use a unicode marker to distinguish from tool calls
+  // Avoid markdown italic (*) since it breaks with special characters
+  return '\u2502 ' + line;
+}
+
 /**
  * Truncate a line to MAX_LINE_CHARS.
  * @param {string} line