I get sphagnum in very compressed, 5 kg mini-bales, and saw them down into approximately 1 pound "bricks".
When I need some, I take a whole brick and expand it by pouring boiling water over it. It swells up and I loosen the fibers, keeping them as intact as possible.
If I end up not using all of it, I let it dry out, and simply rewet it the next time.
Like Shadow, I have occasionally kept sphagnum moist inside of a plastic bag for months at a time with no issues. The "breaking down" we see in the pot occurs as a result of fertilizer exposure more than anything.
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