UFO?? Unidentifiable Knitted Object

Ok, now that I think I have the hang of this picture thing...here's another!

Can you guess what this is....



Ok, does this help??




That's right, it's Wendy's Kitty Bed! Unfortunately for the intended recipient it is made out of the world's weirdest Lopi (from a stash older than most knitters I know) and it WON'T FELT.

Lopi that doesn't felt...kinda like a duck that can't float??? Well, the fibres do felt up a bit, but it certainly doesn't shrink any. I've knit it on a variety of different sized needles, single and double stranded, I've tried running it through multiple wash cycles, shocking it with hot then icy water, adding a bit of soap (not detergent) to the water, adding some baking soda to the water...nothing seems to help?

Any felting experts think of anything else I could try?