I have felted a ton of clothing, both woven and knits (sweaters). You can tell if it's felted by checking a raw edge. See if you can tease a thread out, in other words see if it ravels. If it does, it's not felted. You can try washing/drying again. Due to the additional agitation, a top loader will do a much better job felting than a front loader. Not all wool will felt. I have purchased 100% merino wool sweaters, with garment care tags saying 'dry clean only' washed in hot water, dried in hot dryer and came out just like they went in. I have had great luck with ladies wool blazers, so look for those. I have never tried to re-dye, so I can't help you there.