Direct Damage is the damage you get from a Direct Attack. You can receive Direct Damage when your opponent declares an attack when you don't have any monsters on your side of the field or no cards to defend you with. There are specific cards that let your opponent have a Direct Attack while you have monsters on your side of the field with Inzektor Hopper as an example and even an whole Archetype is based on it. (the Watt-Archetype)
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