Next Damage Reduction and Irreducible

Simple question: if Wraith has 2 damage reduction next time she takes damage, and she takes 1 Irreducible Damage, is the 2 damage reduction used up even though it can't be applied?

Sadly, yes. It tries to reduce, fails, and is gone.

Conversely, it works against villains, too - for example Spite has that drug which soaks the first H-2 damage he takes per turn. If you hit him with irreducible damage, it gets through his soak and uses it up at the same time, so any other hits you do in the same turn will be for maximum damage even if they aren't irreducible, because his soak has already been used up failing to block your irreducible hit :D.