JTS Airacuda losing air pressure

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Looks like the valve seat / poppet interface is leaking. My guess is you’re not seeing a continued inflation of the balloon because it is over the silencer and there are leakage paths both in it and the shroud. As Scott described earlier, it really needs to be placed directly onto the muzzle for best confidence. So you are going to tackle the repair, you may want to do that first.

Otherwise go ahead and evacuate the gun and take it apart and inspect the valve seat for a scratch or debris. You can lap the poppet to the seat with a mild abrasive slurry to remove any radial defects causing it to slowly leak down. Color the mating surfaces with a Sharpie, lap at slow speed with a handheld drill, then wipe them clean and inspect with the aid of magnification. When the Sharpie is completely removed in a continuous ring, the parts should seal properly.
 
Took off just the silencer, or both the silencer and the shroud? The balloon needs to be applied to the end of the barrel itself. The shroud is not sealed.

Though if it’s covered by warranty and/or you will not be making the repair yourself, I’m not sure what level of diagnosis is useful for you to pursue.
 
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OK be patient with me. Ok unthread the barrel and hook balloon to whatever there is behind Barrel. I’m not really sure what the shroud is. Next question would be why is movement with the balloon only when the lever is going forward and not when it’s all the way back although my air pressure seems to be going down when the lever is in either position.