If heat makes things expand, then why do clothes shrink in the dryer?
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The combination of heat and water can turn those fibers into one-way ratchets. Combine with the constant agitation those fibers then ratchet tighter and tighter and tighter, causing it to shrink.
Wet fibers that are dried with high heat get really tight and contract. Some can be stretched out again as you wear them (like cotton), but others take more work, like wool. Wool can be carefully stretched out after being soaked in fabric softener, which loosen the fibers up.
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