Why for the name "Towel"? One evening after an evening build session we were doing the usual beginner session and it was getting crashy out. The crashy part of the night is characerized by lots of motor spin-ups, launch, craaaack of a crash followed by giggling. With 5 people doing this at the same time the sound of all that activity recedes into the background not unlike crickets chirping except more ozone smell. After a bit of this the airframes start to look like this:
One night early in the Brooklyn Aerodrome, Rounder, one of our first pilots remarked at the airplane that I was about to launch looked liked I was tossing a towel because it was so floppy. So the name stuck despite no one really thinking it makes sense or is cool.