Baggywrinkle
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Baggywrinkle is a soft covering for cables (or any other obstructions) that prevents sail chafing from occurring. It is made from short lengths of yarn cut from old pieces of line that have been taken out of service, thrummed into a double braid called "railroad sinnet," which is wound in a helix around the rope or spar in question. There are many points in a large sailing ship where the sails come into contact with various lines. Unprotected sails would soon develop holes at the points of contact. Sailors call this abrasion "chafing".
Baggywrinkle looks like "fuzzy stuff" in the rigging. While it may look to be some sort of marine growth, it is entirely man-made and serves a very important purpose.
Reference: United States Coast Guard Barque Eagle visitor display.