Though this is I think an issue with all heroes, it is especially problematic with the dwarf character owing to his low movement speed.

He has a maximum fatigue of 4 and a movement speed of 3. So he actually moves faster by using a move action (3 spaces), spending fatigue to move 4, then resting (getting rid of all the fatigue so he can do it again next turn) than he would by moving twice (3+3 spaces, and equally ending the turn with no fatigue). The added fact that those fatigue moves also avoid any risk of being hit by many trap cards makes this seem like a major oversight and exploit to me.

Fatigueing movement strikes me as an ability that should be used to get an extra occasional burst of speed that you can only do every now and then, rather than an ability you use constantly because it's actually more effective than movement actions and makes you safer from traps.

Am I missing something here?

My house rule resolution of this is to halve the fatigue recovery rate of the rest action, so a hero only discards fatigue tokens up to half (round up) of their maximum fatigue. In the above example, he would discard 2 fatigue for each rest action. Move actions then become the primary way of moving, with fatigue offering only an extra burst of speed which takes more time to recover from than the time that is saved using it.

Play a campaign all the way through. There are better things to do with fatigue & actions than just moving & resting every turn. Heroes will use fatigue movement to double attack or triple move in a turn, but the Overlord can use Dash & Frenzy (and other cards like Blood Rage) to do similar turns. When a minion moves 3 times & attacks 3 times in a round, possibly with a re-roll or other bonus card thrown in, it won't seem so unbalanced.

and what monster hits 3 times with frenzy (maybe some action that does dmg but not basic attack)?

for others its good tactic but you cannot use it all the time. For some classes or charecters rest is vital to get things done(grisban/healers) and others dont even need use it to much (runemaster gain 2 instead of one from surge and wildrunner 2 move with one fatique)

spiritwalker turns in my last game 1st turn double healing rain 2nd turn hit and rest with skill that gives health for every fatique you gain by rest. 6 last turn were repeating that if needed

Lupin89 said:

Blood apes. Their Ravage ability lets them perform 2 attacks naturally, and their leap attack lets them attack and move in a single action. Even if you rule that the Frenzy attack must be a basic attack, that's still 3 attacks and 2 moves for a single figure off a single Frenzy card.

And the Leap Attacks are technically AoE, potentially hitting more than one hero per attack.