Let's say that you're a stationary observer in a zero-G environment. From your perspective, you measure the speed of a rocket at different points in time. In the first frame, $t = 0$, the rocket is stationary and, consequently, $v = 0$. Let's also say that in time $dt$ the rocket ejects a mass of fuel $dm$ from its fuel tanks at a speed of $v_\text{exhaust}$. In order to find the velocity of the fuel ejected from the rocket from your point of reference, and assuming that the rocket is traveling only in the +x direction, you would use the equation $v_\text{fuel} = v_\text{rocket} - v_\text{exhaust}$.
To calculate the velocity of the rocket from time t to time dt, you would use conservation of momentum as follows:
$P_1 = P_2$
$P_1 = (M_\text{rocket} + M_\text{fuel}) \cdot v_\text{rocket}$
$P_2 = ((M_\text{rocket} + M_\text{fuel}) - dm) \cdot (v_\text{rocket} + dv) - dm \cdot v_\text{fuel}$
Here's where my question comes in: Once the rocket gets to a speed $v_\text{rocket}$ that is greater than the speed $v_\text{exhaust}$, by the aforementioned equation for $v_\text{fuel} = v_\text{rocket} - v_\text{exhaust}, v_\text{fuel}$ would be a negative number. This means that
$P_1 = (M_\text{rocket} + M_\text{fuel}) \cdot v_\text{rocket}$
$P_2 = ((M_\text{rocket} + M_\text{fuel}) - dm) \cdot (v_\text{rocket} + dv) + dm \cdot v_\text{fuel}$
with a special emphasis on the plus sign before the last term. If we assigned an arbitrary value to $P_1$ and $P_\text{fuel} = dm \cdot v_\text{fuel}$, say $500\text{ kg m/s}$ and $20\text{ kg m/s}$ respectively, then
$P_1 = 500\text{ kg m/s}$
$P_2 = ((M_\text{rocket} + M_\text{fuel}) - dm) \cdot (v_\text{rocket} + dv) + 20\text{ kg m/s}$
$P_1 - 20\text{ kg m/s} = 480\text{ kg m/s}$
meaning that the momentum of the rocket from $P_1$ to $P_2$ went down in value. This leads me to believe that after a certain speed, prograde thrust from a rocket actually slows down the vehicle, which from intuition doesn't seem right at all.
Did I make a mistake somewhere in my math or is there actually something here?