It varies a good bit depending on what kind of powder you are talking about.
Basically every grain of that powder is going to be made of a bunch of molecules. When water or oil is added, they may dissolve in that fluid or they may just clump up inside of it.
Very small molecules can be absorbed through the skin, but if it is not a particularly small molecule then it will typically sit on top of the skin until it is eventually washed off or flakes away as the skin it is on flakes away.
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