A penalty in each half saw Sheffield crash to another home defeat in front of another sell-out crowd, as Loughborough ran out 2-1 victors at the Coach and Horses Ground.
It was a close first half, but it was the visitors that had the most chances, with Jonathan Hedge the busiest of the two keepers.
Midway through the half, Dynamo produced the first chance with Hedge denying Rob Norris at close range, whilst moments later he came to the rescue with another point-blank save from Dynamo debutant Nuno Gomes.
In injury time the visitors took the lead, Stuart Ludlam tripping Alex Steadman in the area, and despite getting a hand to the ball, Hedge was unable to keep out the penalty from Curtis Burrows.
The lead was doubled six minutes after the restart, as referee Gavin Hock spotted a handball in the area, with Burrows sending Hedge the wrong way.
Sheffield offered very little until the dying moments, when a late flourish saw Josh Burns fire a fierce effort from distance not too far off target, whilst Jason Alexander made his first save of the game with a point blank stop from Ryan Viggars.
Club had a late lifeline in the last minute, as a defensive lapse saw Marc Newsham in on goal, with the striker making no mistake.
Sheffield FC: Jonathan Hedge, Ben Turner, Jamie Green, Stuart Ludlam, Josh Burns, Ash Grayson, Foday Nabay, Danny Deakin, Marc Newsham ©, Ryan Viggars, Sheldon Jordan. Subs: Jamie Yates, Louis Thwaites, Alex Wonham, Joel Purkiss, Cody Prior.
Loughborough Dynamo: Jason Alexander, Josh Riley, Brett Lloyd, Jack Smith, Dan Gordon, Carl Sibson, Rob Norris ©, Curtis Burrows, Alex Steadman, Nuno Gomes, Tristan Matthews. Subs: Daniel Collins, Andre Williams, Cameron Dear, Reuben Rabstein.