The "blue" is actually gray.
The iron ion the clay used in producing LECA turns grey/black under the reducing conditions of the fuel-fired kiln. The outer surface re-oxidizes upon exiting the kiln, turning the orange color we all recognize.
The reason one can "get away with" overpotting a plant in LECA is due to the wicking abilities of the medium.
In a pot of any medium, most of the water loss from evaporation occurs at the top surface, with some also occurring at the medium interface with the pot (even if it's plastic). In poorly-wicking media, there is uneven moisture distribution, resulting in a soppy "core" right in the middle of the root mass, where the bridging water can suffocate the roots. In a medium that does wick well, the moisture is distributed fairly uniformly, avoiding the problem.
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