here are the directions straight from the equine fresh web site. They aren't talking about wetting it to the point of making it dust... they are only saying to add enough water to "expand and fluff"

Instructions For Use:
INITIAL:

1.) Strip stall

2.) Spread pellets evenly - 1" deep (approximately 5 to 7 bags for a 12x12 stall, adjust accordingly).

3.) Spray water lightly on pellets to expand and fluff.

MAINTENANCE:

1.) Remove solids daily and pick wet spots as they become apparent.

2.) Add pellets as necessary (approximately 1 bag a week). Moisten to expand and fluff.

3.) Bedding should be slightly moist to the touch, moisten when too dry.

4.) Strip stall as necessary (approximately every 4 months) and start fresh.