The world doesn't yet know of Krypto's existence, but that's about to change. Is it because they see him fly through the sky? Nope, they think that's (a bleached?) Superboy. Is it because of his wanton destruction of property?
For his next trick, Krypto escapes from a metal cage by burrowing under the ground creating deep holes Blake will have to pay to fill. Blake gets wise to what's happening and puts more constraints on Superboy. He can't, for example, break the water tank that's in the next trick; so instead, he frictions it until all the water evaporates and creates muddy ground outside the tent which will have to be cleaned. So for the NEXT trick, busting through a wall, Blake tells Superboy he can't fling stones around to cause damage. But he never said anything about dust.