Fault Diagnosis (FD) in time-varying data presents considerations such as limited training data, intra- and inter-dimensional correlations, and constraints of training time. In response, this paper introduces FD in the Reservoir-Embedded-Directional Network (REDNet) model space. Model-oriented methods utilize well-fitted networks or functions, denoted as "models" that capture data's changing information, as more stable and parsimonious representations of the data. Our approach employs REDNet for data fitting, wherein multiple reservoirs are organized along intrinsic correlation directions to establish intra- and inter-dimensional dependencies, thereby capturing multi-directional dynamics in high-dimensional data. Representing each data instance with an independently fitted REDNet model maps these instances into a class-separable REDNet model space, where FD could be performed on the models rather than the original data. Concentrating on the data-intrinsic dynamics, our method achieves rapid training speeds, and maintains robust performance even with minimal training data. Experiments on several datasets demonstrate its effectiveness.