Ferrule Issue - I think it's loose.

^^^This.  And I would drip in a small amount of either 2-part epoxy or some super glue so that it actually has something to bond to that prevents it from sliding up the shaft again.

I was always told to never submerge that particular area in water ever.. It just doesn't sound like the right thing to do. But I don't know any better...

My R9 460 comes loose like that every so often also.. i just scoot it forward. I'd throw a touch of glue before i watered it down.

The same thing has happened to my Dymo2 driver (also happened to a 907D2 driver). I've ignored it until reading this post. Is there a performance decrease b/c of this?

I doubt there's a performance decrease. I noticed this on the range before the last time I played, but then left the day after for two consecutive business trips, so I didn't get around to asking about it. In any case, I hit the driver better than I ever have last round in terms of distance (although I lost some sizable accuracy). That having been said, maybe I could have hit it better with the ferrule in the right place. Or maybe it's psychosomatic. I don't really know.

One note of caution.  Most likely, the ferrule has slipped up the shaft, but it could also mean that the clubhead has slipped down the shaft (the epoxy has broken) and will soon come flying off.  Make sure your clubhead is still securely tight by grabbing it and trying to twist it.

Not that this happens very often, but it could.  I was playing one day, and hit my pitching wedge, then noticed that the ferrule had separated from the clubhead.  I thought, like you did, that the ferrule was what had slipped.  On my next swing with the wedge, I found out differently!

I can't possibly see any way that running water over that area could cause any damage.  It's..... well, water.  If water damages that area, I might never wash or play them in the rain ever again! Unless there is just one sliver of epoxy bonding the shaft to the I.D. of the hosel, there is not going to be any water getting into the hosel area.  Run it under warm water, blow it off, drop some glue in there and slide it down.  But like Harmonious said, look to see if maybe the exopy has broken it's bond and the shaft is pulling out.  Shouldn't be too difficult to tell if that's happening.

Otherwise, with few exceptions, the ONLY purpose of the ferule is to make a nice clean looking transition from the hosel to the shaft.  Purely cosmetic.

If there is fear of getting water down the shaft, you might be able to use a hair dryer to heat up the ferrule.

Interesting you mention that... I've seen something at the golf shop that resembles a hair dryer. Maybe it is one?

you just need to heat it up a bit with a hair dryer to move it down and use some glue, any kind of glue to stick it to the clubhead.

Alright, that's next on my shopping list after the camera. Heat gun... I guess at Home Depot (or equivalent).