It may not have been squirrels, but they have been known to use cloth materials when building nests:
google/wiki:
Yes, squirrels actively carry various materials like leaves, twigs, grass, moss, and shredded bark into trees to construct their nests, called dreys, which are woven into a spherical shape and lined with soft materials for warmth and protection. They build these nests in tree forks or hollows, using their mouths and paws to transport and arrange the materials, creating a secure, insulated den.
What they use
- Structural: Twigs, small branches, leaves, and bark.
- Lining: Soft materials like moss, dry grass, feathers, pine needles, and even human-made fibers like insulation or cloth.
Except this is no small piece of cloth. This is a section of Lilly's blanket that she used to sleep under. It is part of a bed-size blanket.
I think there is perhaps some confusion from the fact that it has been called "Lilly's LOL doll blanket." It was NOT a doll blanket. It was a full bed size blanket with LOL doll print on it.
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