Ecological communities with many species can be classified into dynamical phases. In systems with all-to-all interactions, a phase where species abundances always reach a fixed point and a phase where they continuously fluctuate have been found. The dynamics when interactions are sparse, with each species interacting with only a few others, has remained largely unexplored. Here we study a system of sparse interactions, first when interactions are of constant strength and completely unidirectional, and then when adding variability and bidirectionality. We show that in this case a phase unique to the sparse setting appears in the phase diagram, where for the same control parameters different communities may reach either a fixed point or a state where the abundances of only a finite subset of species fluctuate, and we calculate the probability for each outcome. These fluctuating species are organized around short cycles in the interaction graph, and their abundances undergo large nonlinear fluctuations. We characterize the approach from this phase to a phase with extensively many fluctuating species, and show that the probability of fluctuations grows continuously to one as the transition is approached, and that the number of fluctuating species diverges. This is qualitatively distinct from the transition to extensive fluctuations coming from a fixed point phase, which is marked by a loss of linear stability. The differences are traced back to the emergent binary character of the dynamics when far from short cycles.
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