NOT that I recommend this, but a very young Bubonce got ahold of a big fuzzy-backed plastic tablecloth. He ripped it to shreds and ate a good deal of it, and was never the worse for the experience.
Moral of this story:
a.) do
not put plastic tablecloths in reach of bunny
b.) sometimes their little digestive systems are more durable than we think
So thewisest option is to keep potential blockage-causing materials out of the way--I've never had a problem with very limited paper, cotton, or wood--but even when mistakes happen, it's not always fatal.
Just keep a close eye on the little stinker, and if things seem normal (eating, drinking, playing, pooping, etc.), don't worry, it probably all went through. Mine love ripping towels whenever possible--under my eye of course.
Here's a scarier story, though, about strings, since you mentioned them hanging off the towel: I once, about 10 years ago,came out to find a young blind Californian had hung himself by the neck from a looped strap I'd set on top the cage the night before. Somehow--no idea how he managed it--he'd pulled it through, stuck his head in, got stuck, panicked, and started spinning until he'd wound himself off the ground. He was nearly dead when I came out to feed early that morning--but I untangled him quicklyand he survived.
That was one of the most horrific and guilt-producing things a kid cango through--ever since I've been paranoid about stranglythings hanging in reach. Bub's tablecloth incident was an idiot mistake on my part--we all have those!--but normally I keep everything rope-ish or string-ishway way out of reach of little teeth unless I'm supervising.
Sorry for the horrible story, but hopefully it will help someone avoid a similar happening!
Rose