Oh goodness you have a job. I would just wash and dry and not worry about the raw edges. because if you don't get the fabric washed to get the smell out and it goes meldew you will loose all of your stash. I have also found if you can hang your fabric outside on the line instead of in the dryer you don't have the tied in knots look which is a real pain to iron out.
Also you can get those airtight bags at walmart that you could put your washed & ironed folded fabric in and you seal the end and then lay on the floor on top of it to get the air out . This will keep any new water problems out.
I know this is alot of work but it is better than loosing everything. Hope this helps chin up you will get to the end of the mess faster than you think. If I was closer I would come help. kjym Kathy