This project was a test how felted knits behave when made on the Knifty Knitter. In needle knitting knitting, most objects shrink more lengthwise than widthwise. That's why I knit this bag long and skinny. Post-felting, the bag is still long and skinny - not what I intended.
I theorize that with traditional loom knitting's twisted knit stitch, the felting process behaves differently. The length to width felting ratio was not quite as extreme, in fact, it's nearly the same.
This was Patons Classic Merino, double stranded on the yellow 41-peg round loom. I basically knit a long strip, 26 stitches wide, until it was a yard long, then folded it in half and loosely sewed up the sides. Then I added the 4 stitch wide straps as shown. Not including the straps, it measured 12 x 18 inches. Post-felted, it's 8 x 12 inches. Both measurements are a 2:3 ratio - exactly the same.