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They stretch in all directions, and like the synthetic base layers worn by skiers and many other athletes, they are breathable (twice as much as cotton) and wicking to remove moisture from the skin.
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After harvesting, the cherries were pulped to remove the beans and are being slowly dried to reduce the moisture content to between 10-12%.
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Of course, a device of that size also poses a number of problems, but Insound appears to have all those sorted out, with it employing a special "spongy material" that allows moisture to escape and prevent infection, and a magnet to actually remove the device from the ear.
ENGADGET: Insound's Lyric hearing aid cozies up right next to your ear drum