>"Where is the reference defined?"
Like all other Blockreferences for Blocks or Xrefs too.
It's more difficult as you think.
ONE BLOCK looks every time the same way because there are one set of objects,
you can not have one Reference to BlockX with a line stretched longer than in another Reference for this BlockX, OH.
Behind the scenes of
DynmaicBlocks are more a program than a special Block.
Block with a stretch parameter/action:
Insert BlockX, you have a Blockreference of BlockX
Test it with command LIST
Use the dynamic stretch feature... ACAD will copy BlockX and create a Block with an anonymous Blockname "*Unnn",
the Blockreference will references this Block now.
Test it with command LIST
Oh, I am wrong?
No! The "effectivename" is called Blockname in the PropertiesPalette and also in command LIST,
the "anonymous Name" is the real Blockname.
And if you like to the the whole terror:
Test it with an "empty" DXF,
create one Block with one single line,
create a Blockreference
saveas NORMAL.dxf
Edit the Block, add a linear/stretch parameter/action.
saveas DYN-Standard.dxf
Now, stretch the Block by using the dyn. paramter.
saveas DYN-Edited.dxf
Compare the DXF files and you can see where the data is.
Sorry, there is no "How to" in the DXF Reference, that is your challange to learn about theses things.
(too much things for a short forum help)