First I suggest you go to Ravelry and look up the yarn. There are other chromas so make sure you select the right one. There are 72 comments under the fingering weight. I didn't read all of them.
So... It is loosely spun single and not plied. This tends to give wool a halo which makes it fuzzier which explains the fluffiness you saw. I don't know for sure, but I think it also makes it easier for the yarn to break. I've seen my friends who knit and spin break the yarn on purpose rather than cutting it. Make sure you aren't strangling the yarn as you knit and maybe it won't happen as much.