It's heartbreaking - I've read all sorts of horror stories about birds getting caught in loose threads if the fabric is worn, but this is the first time I've heard of the fibres being toxic. It's outrageous that anyone can market items like this using materials that are not guaranteed safe - it should go without saying. Is there any way to tell if it's safe? Or is the only answer to bin them?
I'm so sorry this happened to poor Spunky, but thank you for the warning.