Scrunch or Chaos
From Tie-dye Wiki
Scrunch, chaos, crinkle, you may have heard it referred to by other names as well. This fold, in all its simplicity, illustrates the principal of sky is the limit with the variety of effects it can produce. Scrunch, along with accordion and spiral are the foundation folds for tie-dyeing. They may be combined in many different ways. The scrunch fold is often applied to "left over fabric" used along with the accordion fold as an alternative to a bleed.
 Folding a Scrunch
Fabric is gathered into a sea of fine random pleats, the smaller the pleats, the more intricate the result. While scrunching the fabric, you want to keep it as a flat disk, not allowing several layers to deveop on top of each other
 Binding the Scrunch
The pleated fabric is then bound with string or rubber bands. Work carefully, using the palm of your hand to keep the fabric from gathering up as you tighten the strings. It should remain as a disk perhaps 1 inch thick. Rotate the bundle as you wrap the string over and under the fabric.