I was just at hydroturf in anaheim and all the guys were really helpful. The new process involves filling the hydroturf with the first color of dye, then when it gets to the height where the diamonds start they hit it with the other dye. No more peeling but the new problem they are experiencing is the color on top will eventually wear off making it appear as if the diamonds have peeled. However, it lasts much longer than the old process, just try not to sand your turf.
I ordered 2 sheets of black on white diamond cut (they dont have anything in stock thats already cut). Ill be back up there next week to pick up which is nice cuz they charge a lot for shipping it an hour away.
