Everyone know the skill fade allows your enemy to unable to lock on to you. Same thing happens when you use either the cloaking weapon or cloak item. This also plays an important role in melee.
Everyone remembers lesson 1 when you have a target insight, it'll auto boost you to your enemy, that's why we do ZBS. Now when your enemy is cloaked, there' is no auto boost, meaning u'll just be hitting empty air even if you see him. Which means if you see a cloaked enemy, and you activate melee special, u'll just look like an idiot with a 1 second glow cuz no target means u can't auto boost to him during a melee special.
Now this can be used in the opposite effect. Usually when you see someone melee special you from a bit of distance, you tend to activate your melee special too and both just cancel or due to some crappy lag, u'll get hit by his special. Instead now, if you see some auto boosting in a special, activate cloak immediately, and his special will stop in its track. Now you can do your melee special and finish him off. Pretty good deal, an item to trade for a successful counter special.