I tend to sleep with my hair up in a pineapple with a scrunchy and on a satin pillow.When I used this scarf instead, the results the next morning were a bit worse. My curls looked like they'd been too cramped and lost their shape a bit. So I would say the scrunchy and satin pillow method works better for me.In addition, the scarf is not super comfortable to sleep with. If you wrap it tight, it hurts. And if you make it loose enough to be comfortable, it won't stay put all night.I also noticed when taking off the scarf in the morning, that it left a tiny bit of static in my hair, which is obviously not great.Also, on the color bleeding part: yes, you really need to wash it immediately. When I received my package, I immediately tried it on. I had done my nails the day before (light pink) and just from wrapping the scarf around my head, my nails were stained with the dark navy of the scarf. After washing it, I haven't noticed much bleeding. My pillows are not white though, they are grey, so it's less of a risk.
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