To elucidate energy dissipation in cold fusion in palladium-deuterium systems, I focused on the neutron burst that occurs immediately before excess heat generation. Based on phase growth in palladium-deuterium binary alloys, I found that the neutron burst occurs only when the β-phase is thin; in a fully grown β-phase, neutrons generated during nuclear fusion do not escape. For this to hold true, it is required that neutrons always collide with the nuclei of the β-phase and undergo nuclear fusion without elastic scattering. To be consistent with conventional nuclear physics, the uniqueness of these neutrons must be extremely short-lived. I termed the quantization of the neutron’s momentum direction the “Freikugel effect” and the short-lived neutrons that inevitably fuse with nuclei “crazy-glue neutrons”. Since neutrons are produced, the energy dissipation is on the order of MeV. Electrons are a promising candidate for the particle to mediate energy transfer between nuclei, and the energy dissipation is considered to be due to internal conversion. In cold fusion of palladium-deuterium systems, neutrons produced via the dissipation of the mass defect energy of ^4He are captured by deuterium to produce tritium. The β^− decay of this tritium produces ^3He. Furthermore, as the unique properties of neutrons prevent themselves from escaping the palladium crystal, the ratio of neutrons to tritium n/T becomes extremely low at about 1E−7.