The colors in fabrics are created by dye molecules that absorb some wavelengths of light and reflect others. Sunlight contains all wavelengths of visible light, so when fabric is exposed to sunlight, the dye molecules absorb some of the light and reflect the rest. If the fabric is exposed to sunlight for too long, the dye molecules will eventually become saturated and will no longer be able to absorb any more light. This will cause the fabric to appear faded.
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