Awww! It's always a shame when something like that happens. I have heard also of freezing the yarn to help with shedding. Can't remember where I read that though, I'll look around and if I can find the article again I will post it for you.
I knit, therefore, I smile
Another felted bag
Mrs. Beetons Wristwarmers
On The Needles:
Silver's Palindrome Scarf - in Patons SWS Natural Pink
Feather and Fan Shawl - in Estelle Cadenza