Unidirectional modes in magnetically biased electromagnetic systems have long been associated with a thermodynamic paradox: the absence of counterpropagating channels may produce field “hotspots” that can act as unphysical sinks of thermal radiation. Here we revisit this problem and show that, surprisingly, material dissipation alone cannot fully regularize the singular behavior of the normal modes of a nonreciprocal cavity. We demonstrate that the paradox is resolved by nonlocal effects, which suppress the material response at short wavelengths and eliminate field singularities altogether. Our analysis reveals a fundamental link between nonlocality, topology, and thermodynamic consistency, showing that real-space singularities and ill-defined topologies go hand in hand, even in strongly dissipative platforms. These findings clarify the physical origin of the paradox and establish nonlocality as a natural and robust mechanism for its resolution, opening new avenues to explore the intertwined roles of topology and nonlocality in passive nonreciprocal photonics.

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• Fluctuations & noise
• Non-reciprocal propagation
• Non-Hermitian systems
• Topological materials