EPS, expanded polystyrene IS closed cell foam,
en.wikipedia.org/wiki/PolystyreneIt's beads of closed cell foam pressed together, the water gets into the spaces between the beads, think of a jar full of glass beads and water, plenty of water gets in there between the beads.
It's lighter than the other kind of SOLID closed cell foam like XPS which is prone to delaminate. One surfboard company makes XPS boards with little breather holes all the way around the board, water WILL not soak into the foam but the gas needs to escape.
On the other hand water soaks into an EPS board like a sponge even though the foam is closed cell.
Some unscrupulous dealers will make claims about using "closed cell EPS foam", insinuating that water cannot soak in.