The dusty sponge is a sexual act in which the dominator (usually male) artificially increases the size of an (usually womans) asshole to the point where he can insert a fist. He then grabs his dick and cums in her asshole, spits in her asshole and then proceeds to fist her with a sponge in his hand, collecting all of the juices he proceeds to grab her hair from behind and squeeze the sponge over her eyes.
Mark: Yo bro you see Paul do The Dusty Sponge to Robert last weekend?
Brian: Yeah bro shit was insane!