Equipment with enchantments that be purchased from, or entirely assembled from items from NPC Stores will only yield useless powder when pulverized. This includes the Gnollish autoplunger and the party hat, which one would otherwise expect to yield twinkly powders.
The following equipment will have a chance of smashing into twinkly powder.
The description of this item alludes to the Disney cartoon Peter Pan where, in order to fly, children had to think happy thoughts after being covered in pixie dust. The pixie dust came from Peter Pan's tiny companion Tinkerbell, who was depicted as a twinkling fairy. Peter Pan's method of coating the children with pixie dust was taking Tinkerbell in his hands, violently shaking her up and down over the head of kids, then letting the dust that came off Tinkerbell settle on the children.