Efficiently harnessing GPU compute is critical to improving user experience and reducing operational costs in large language model (LLM) services. However, current inference engine schedulers overlook the attention backend's sensitivity to request-length heterogeneity within a batch. As state-of-the-art models now support context windows exceeding 128K tokens, this once-tolerable inefficiency has escalated into a primary system bottleneck, causing severe performance degradation through GPU underutilization and increased latency. We present CascadeInfer, a runtime system that dynamically reschedules requests across multiple instances serving the same LLM to mitigate per-instance length heterogeneity. CascadeInfer partitions these instances into length-specialized groups, each handling requests within a designated length range, naturally forming a pipeline as requests flow through them. CascadeInfer devises a dynamic programming algorithm to efficiently find the stage partition with the best QoE, employs runtime range refinement together with decentralized load (re)balance both across and within groups, achieving a balanced and efficient multi-instance service. Our evaluation shows that, under the same configuration, CascadeInfer reduces end-to-end latency by up to 67% and tail latency by up to 69%, while improving overall system throughput by up to 2.89 times compared to the state-of-the-art multi-instance scheduling systems.