That’s the way I understand it as well.
I’ve been told a previous chainsaw dyno using a mechanical brake (motorcycle maybe) could generate huge numbers instantaneously by applying said brake too rapidly.
Makes sense.
As for rotating mass in a two stroke, my sentiments are as follows.
Anything more than enough to overcome the drag of friction, flywheel fan, case compression, mass airflow, compression and engine load, during the roughly 75% of one rotation that does not include the power stroke, While maintaining minimal engine speed loss, is excessive and contributes only to slow the response to change of RPM due to inertia.
Larger rotating mass does hold some stored energy once it is created, but I don’t it believe it aids in creating it, therefore it is of no benefit in a full useable RPM range dyno pull as you are exhibiting.