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Handling repeated characters in text can be tricky, since they can represent either the correct spelling of a word or informal character elongation often seen in social media posts. We present CANDLE, a lightweight system for character-level Arabic noise deduplication that addresses this challenge without relying on handcrafted rules, dictionaries, or morphological analyzers. At the heart of CANDLE is a novel application of Connectionist Temporal Classification (CTC) to this task, a formulation not previously explored for character deduplication, which frames normalization as a sequence alignment problem over a character-based encoder. Evaluated on three benchmarks spanning clean newspaper, manually curated ambiguous cases, and real-world social media text, the CTC model achieves a Sentence Error Rate (SER) as low as $5.37\%$ and consistently outperforms a classification-based baseline by a large margin. To reduce inference overhead, we distill the 6-layer CTC model into a 2-layer student, achieving a $3\times$ depth reduction with minimal performance degradation. Beyond deduplication accuracy, normalization yields a practical downstream benefit: a relative reduction in tokenizer fertility of up to $12.8\%$ across a diverse set of Arabic LLM tokenizers, directly lowering inference costs and improving context window utilization. We release all code and models publicly to support reproducibility and advance future research\footnote{this https URL}.