Huh... This is odd to me because I've only felted Cascade yarn. And it felted up great.
However, the bleach thing in the dyeing process can be a bitch on felting...
To my understanding, it's the hot water/adgitation combination that does the felting, not cold water or dryer action. So perhaps just repeated hot/adgitation sessions? I know that while felting, taking the piece from the hot adgitation, dunking it in cold water, and returning it to hot water adgitation can help... "shocks" the fibers or whatever... but this is:
::hot/adgitatehot/adgitatehot/adgitatehot/adgitate::COLD DUNK::hot/adgitatehot/adgitatehot/adgitate::COLD DUNK::hot/adgitatehot/adgitatehot/adgitate::