I used it like I use Valentino's Resurrection: I put it on a pad/cloth and rubbed it on, using a spinner. It cleans the ball and puts a dull finish on it. Motiv says 1000 grit, but I think that's when you do it by hand. With a spinner, I'd say the finish was in the 1500 - 2000 grit range.
The use you did was one of the options, as far as I know, to help draw out embedded oil, to some degree. I have not tried that method myself. When I want to draw out oil, I wither use Clean and Dull or my NuBall machine.
It's called "Gel Scuff" but it seems to be like many compounds: a rough abrasive held in suspension in a liquid, usually white. I wouldn't call it a "gel" either; but by severe shaking, I can see it coming out as a foam. I think you may have shaken it a lot; I think I did a little less, just enough to insure that the abrasive is mixed back up, as it was when it was first put into the bottle.