Hyperbolic graph representation learning has emerged as a powerful paradigm for modeling hierarchical data. Unlike Euclidean space, which exhibits polynomial volume growth, hyperbolic space grows exponentially with radius, naturally accommodating tree-like structures without the geometric distortion known as Euclidean crowding.

Despite strong empirical performance, the theoretical mechanisms underlying hyperbolic embeddings remain poorly understood. In this work, we provide a geometric quantifcation research for Euclidean crowding, a generalization-theoretic explanation for the superiority of hyperbolic space on hierarchical data, and further develop an adaptive Euclidean-hyperbolic fusion learning framework toward bridging this gap.

Specifically, we first establish a geometric quantification of Euclidean crowding by analyzing layer-wise minimum separation in node embeddings, proving that fixed-dimensional Euclidean embeddings of tree-like graphs inevitably exhibit layer-wise crowding that leads to weaker margin-based generalization bounds. Second, we provide a generalization-bound for the superiority of hyperbolic geometry on hierarchical data. Third, we propose EH-Fusion, a geometry-adaptive framework that lifts Euclidean GNN representations into hyperbolic space via exponential mapping and adaptively fuses both geometries based on node-level neighborhood expansion patterns. Extensive experiments validate our theoretical insights and demonstrate the effectiveness of EH-Fusion on benchmark datasets.