A mechanism is described which considers the effect of small magnetic particles on the spin diffusion length in a granular giant magnetoresistive material. Spin depolarization occurs by precession of the spin orientation of the carrier due to the s-d exchange interaction within a magnetic particle. Numerical simulation of this jitterbug effect is found to generate a temperature and field dependence of the distance a carrier may travel within the sample without losing its spin memory. (C) 1996 American Institute of Physics.