Holy cow! It was already wet in the bag? I'd be scared to use that.
This is the product I buy (http://www.fafard.com/?p=139), and here are photos of it below in my hands and the package for the sake of clarity. It's airy and fluffy even when wet (if it's not still fluffy when wet, then you're grossly overwatering). There are some chunks of pine bark here and there. This is the content, per the manufacturer:
Canadian sphagnum peat moss
Processed pine bark
Perlite
Vermiculite
Starter nutrients
Wetting agent
Dolomitic limestone
It's been working like a champ. I probably put less than 3/8 cup of water total per 20oz cup of soil, this product is similar to others that have a wetting agent - they require little of nothing for moisture to maintain a perfect humid, moist environment. I have never had a problem with "swamp cup". But I'm pretty conservative with watering, because I know overwatering is a huge mistake folks make, it gets everyone at least once or twice, and plant material at this stage is incredibly forgiving with under-watering, especially when kept in a sealed humid environment like the boxes many of us use for watering - the moisture never goes anywhere.
Of course, YMMV. I am fully, 100% starting to believe that products vary from region to region, because I'm pretty sure there are regional facilities making the stuff to cut down on shipping. The Fafard products I use are likely made in the southeast, and distributed only in the southeast from that facility. If you live in the northwest USA, you may have a different facility making the stuff, and it may look like a different product. I really don't know (I'd never heard such a thing until I started playing with figs on this forum and GW)