@Ichthyic: I do not know since I haven't found this item myself. Can you combine it with anything? If it works like ordinary dye you need to equip the modified item in order to see the color change. Let me know if you find out.
I believe it is supposed to be a permanently useable dye that gives you a random color when used on a piece of armor (based on some talk I saw on another thread), but currently I can't get it to work on anything.
I have seen them for sale from vendors that typically sell other dyes as well now.
If in your ventures through the files, you see mention of it, check to see if it is active and just has a typo somewhere, or if they just never activated it.