I knew about how Danish needed to be laid flat or washed after use but its just something you read on the tin, or are instructed briefly in, but 99/100 nothing is going to come from chucking the rag in the bin.
Until one of the big antique places(glorified junk shop) where makers, etc etc sell their wares or produce. I heard it burnt down, with everybody including us losing everything - 1xdining table in oak,2 coffee tables and 1x 4 door cabinet, all reduced to ash.
From what info from the fire brigade, they think it started in a cupboard where cleaning materials used for finishing were kept. And in that it kind of rammed it home the dangers were in fact real, and cloths needed proper care and disposal.
This is something i do now. All rags are gathered up and put in the sink, where i wash them through with water. Most oils you can wipe or squeegee on, and its normally paper towels to clean off the excess, so simply soaking them you're not really losing money or anything. Actual cloths are laid flat till dry, then washed on hot and soapy.