Methods and systems for slurry hydrocracking with reduced feed bypass and methods for modulating an amount of toluene insoluble material present in a slurry hydrocracking reactor are provided. An exemplary slurry hydrocracking method comprises the steps of: combining a hydrocarbon feed and a slurry hydrocracking catalyst or catalyst precursor to generate a slurry hydrocracking feed; introducing the slurry hydrocracking feed to a slurry hydrocracking reactor under hydrocracking conditions suitable to generate a first product stream; drawing a drag stream from the slurry hydrocracking reactor, the drag stream comprising a hydrocarbon, mesophase material, and solid catalyst particles; separating the drag stream into a first separated stream and a recycle stream, with the first separated stream comprising mesophase material and solid catalyst particles, and the recycle stream comprising the hydrocarbon; and directing the recycle stream into the slurry hydrocracking reactor.