I know exactly what you mean awelcome, I tend to call it poofy, but my hair does the same thing. I live in FL so its always been like that every summer. The last few years I've had my hair long so I would put it in a bun until about mid-morning to smooth it down, usually my hair looked and felt good for awhile after I took it down. Since going CG I was still getting that issue since the dews started climbing. I recently was convinced to try a hard-hold gel and that has made a major difference in the way my hair looks. I am using Volumax Mega Gel from Sally's but la looks & BRHG etc are spoken well of here. I also use a lot of protein, its in pretty much everything I put on my hair and has definitely helped with breakage and waviness. It's definitely worth it to pickup an inexpensive medium to hard hold gel and give it a go. I definitely see a difference in frizz on the days I don't use the VM gel and I'm getting used to sleeping with crunchy hair.
. I think the poofy hair looks dry mostly because it doesn't clump or even lay as a unit, each strand tries to do its own thing so there's no solid mass or clump for light to reflect off of.
I've read several posts stating that the best way to judge protein-moisture balance is on wet hair. If wet hair feels mushy and loses curls quickly after being scrunched then it needs protein. If it holds wave/curl after being scrunched you're good. If it feels rough and straw-like even wet then its over proteined. I have been scrunching the length of my wet hair after my leave-in every shower since I read this. At first my hair always felt mushy even though I was doing PT's and starting to use RO's with protein, but I think I had gotten really over-moisturized. For awhile there I wondered if my hair was completely indifferent to protein. After about a month the wave started to hold after I scrunched it and I had better wave out of the shower too and it has continued to improve. Personally I think the best way to start with protein is to use it in a RO or cowash, etc you use everyday rather then doing big blasts of it occasionally. That way you can stop, slowdown, adjust when/if your hair starts to show signs of too much protein and not end up with a protein fried disaster.