Dehydrated fondant is not a powdered sugar, though its appearance is similar. It is a dried form of fondant icing. During the manufacture of fondant, part of the sucrose is changed to invert sugar.This helps keep the sugar crystals tiny, which makes for a very smooth, creamy icing with a good shine.
xD Copied and pasted from Le Cordon Bleu Professional Baking book. Good on you for making information free though!
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