Velvet kills pretty quick, is common and contagious. Here's a little excerpt on identifying post-mortum and life cycle (note that its source can be anything wet:
Life Cycle of Amyloodinium:
This parasite is most often "brought in" to a new system from newly acquired infected fish/es, but may be acquired and passed on invertebrates, live rock, algae... most anything wet. Hence the need for diligence in selection, acclimation and quarantine.
Free-swimming infective dinospores, have an apical flagellum and one at the waistline in a groove, red eye spot, measure 9-15 microns. According to Bower (1987) dinospores can usually live for 7-8 days without finding a host and are infective for 6, remaining alive and infective even longer at lower temperatures. She recounts that though most emerge from encystation within 5 days and survive another 7 to 9 days, some dinospores were present in their test tanks (at 75-80 F.) some 37 days later.
Taxonomy/Nutrition:
Amyloodinium is a Dinophycean (Dinoflagellate), of the same order as Gymnodinium breve (red tide organism), family Peridineae. This parasitic species derives all nutrition from its host; lacks photosynthetic chloroplasts (Unlike freshwater species of Oodinium). Marine velvet absorbs cytoplasmic fluid by means of a pseudopod that appears to have histolytic properties. Primarily it is a gill parasite, but may attach to the body (Blasiola 1978)
Clinical Signs/Pathology:
Tissue ulceration and hypersecretion of mucus are obvious microscopically. Hyperplasia and filament adhesion, with the feeding stage burrowing deep into the fish host's subcutaneous skin layer. Infected fishes have a white, tan, golden or gray dusty or powdery appearance over their outside. May not be seen till late stage as the gill filaments are primary sites, therefore rapid breathing is a key initial symptom. Always display rapid breathing (more than 80 openings per minute). Additionally, infected fishes generally swim near the surface, "flash" or scratch against the bottom, decor and refuse food. All fish in the system will have the disease to a varying degree. Loss of life is said to come about from interference with respiration, but many dead fish examined have few parasites on their gills, so the question of toxin involvement is raised.
Identification of Amyloodinium is attained through a skin slime smear (or gill section if the fish is dead) with a spatula or glass slide, cover glass. Dinospores can be seen at 150 times magnification locomoting in wavy, bee-line tumbling motion. They are bell-shaped, have a mid-line constriction, about ten microns in length. Vegetative forms are about 60 microns, slightly oblong, dark colored, containing large starch granules that stain easily with iodine.