I had a small arts/crafts company from '95-'02+, where I made >12,000 pens & pencils; rollerballs, fountain, & ball point and .5 & .7 mm pencils. I turned the barrels by hand on small lathes, and have the carpal tunnel problems as a reminder. I used exotic tropical woods, crushed velvet (celluloid), Corian scraps, and tried stabilized spalted woods. The latter had the highest rejection rate - sometimes I'd notice small pieces missing when I put them out for display at a show, having been perfect when they were completed and boxed (I was a one-man shop!). I quit using it early in my career. I think it is the nature of the beast.
I had started out turning larger-scale items two decades earlier - but couldn't give most of my bowls, weedpots, candle holders, etc away. Spalted wood in the larger scale - and not stabilized - was often treated to some thick CA glue and accelerator before turning - it helped, but the centripital forces were high - and often redistributed the bowl, etc, explosively. Spalted wood is pretty - but not dependable - stabilized or not - not for me! My favorite material was/is cocobolo wood - just wear a mask! Glad you got a happy resolution.
Stainz