This paper presents the technique of concurrent hierarchical fault simulation, a performance model, and two hierarchical optimization techniques to enhance fault simulator performance. The mechanisms for these enhancements are demonstrated with a performance model and are validated experimentally via CHIEFS, the Concurrent Hierarchical and Extensible Fault Simulator, and WRAP, an offline hierarchy compressor. Hieararchy-based fault partitioning and circuit reconfiguration are shown to improve simulator performance to O(n log n) under appropriate conditions. A decoupled fault modeling technique permits further performance improvements via a bottom-up hierarchy compression technique where macros of primitives are converted to single primitives. When combined, these techniques have produced a factor of 180 speedup on a mantissa multiplier. The performance model indicates that the speedup should increase with circuit size.