Originally Posted by bearisgray

Kona is generally well behaved. Try returning it to the store (with the sales slip).
I would consider it defective. If the store won't refund your money, try contacting Kona.

At any rate, don't use it if you can't get it to stop bleeding.

I have come across a very few fabrics that simply won't quit losing dye. Which is why I'm a member of the wash-before-cutting group.