We see this stuff frequently during inspections of attics. Usually it isn't quite as extensive, or free flowing.
I was at a home inspectors meeting a few years ago and a slide came up that showed this stuff on a rafter, and one of the inspectors started talking about toxic mold, and health risks, etc. The rest of the room quickly corrected him.
I just thought this was a cool example, and YES, I know, the attic insulation is upside down.
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