I think she said that she bought Moda fabric that was fraying like crazy. You could contact Moda and see if that is the rule with that fabric, or it could be one of their whoops! They might replace it. For applique instead of using fray check--it can bleed about 1/4 inch, Elly Seink----Can't spell her name, recommends using cheap clear fingernail polish sparingly on the very edge of the piece you are appliqueing. (Your nail polish can also be thinned out a bit with the nail polish thinner, if you have an issue with it being too thick)
I think the suggestion for making a chenille type quilt an excellent one. A rag quilt would also be a good suggestion.