Here is a snippet of my qc file case I missed something. https://developer.valvesoftware.com/wiki/$sequence doesn't display anything that pops out at me.
`$ModelName "rack.mdl"
$Model "rack" "rack.smd"
$SurfaceProp "metal"
$Contents "solid"
$CDMaterials ""
$Sequence idle "rack.smd"
$Sequence fan {
rack.smd
fadein 0.2
fadeout 0.2
fps 30
}