Since the historic announcement of cold fusion by Fleischmann and Pons in 1989, numerous experimental results have confirmed nuclear reactions in metals. However, the theoretical framework remains insufficient. To explain cold fusion in the palladium–deuterium system, I propose a fusion model induced by dislocation annihilation. Huizenga’s three miracles are resolved as the macroscopic force accompanying dislocation annihilation enables quasi-static fusion with atomic-scale confinement to overcome Coulomb repulsion, resulting in selective production of the thermally most stable nucleus, 4He. Furthermore, the reaction probability and excess heat generation are derived to be proportional to (D/Pd)^(14). The threshold deuterium loading ratio is calculated as 0.85, consistent with McKubre’s law. Thus, this framework provides not only qualitative insight into observed behaviors but also quantitative estimations of cold fusion phenomena. Finally, Paneth’s experimental results from the 1920s were reevaluated. The amount of helium predicted by my model strongly suggests that Paneth’s experimental observations were indeed correct as the earliest excellent proof for cold fusion.