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Yeah, it means designate for assignment.
If a player is on the 40 man roster, he needs to be waived before he is designated for assignment. That is, every team will have a shot at claiming him before he goes to the DFA screen. Once he is DFA'd you have ten days (or whatever you set it to) to trade him, cut him or re-assign him.
If the player isn't on the 40-man roster, then you don't need to waive him first to DFA him.
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