Ok, did some research and it appears my initial reaction was correct. While vermiculite does have the capacity to absorb as much as 3.25 times its weight it is very light and so even with a full water load it will be lighter than water. Here is the math.
Weight of vermiculite varies from 4- 10 lbs/ cubic foot
Vermiculite will absorb between 2.2 and 3.25 times its weight in water
using the high number for both 10 x 3.25 = 32.5 lbs / cubic foot
freshwater weighs 60 lbs/ cubic foot
In order to sink the fully waterlogged product would have to weigh more than 60 lbs/ cubic foot.
You will note the referenced article talks about using it as a lower layer apparently they intend for it to be weighed down by gravel or sand.
Sorry for the confusion. Scott