I was hooking up an old style (but unused) 3W ignition sensor with a JR-style connector so I could use it with a DA ignition module. I cut off the Dean's connector which had a black, red, and white wire. I discovered the center wire (red) only went a few inches into the heat shrink tubing and stopped...not connected to anything but the Deans plug.

Is this correct? Or is there something wrong with the sensor wiring?

The DA ignition box has a JR female connector with 3 wires attached.