I would not use it either until I could get it to stop bleeding. Keep soaking it for days and hopefully you will be successful at ridding it of the excess dyes. Interesting that others keep posting that vinegar doesn't help, because I recently had a friend wash a little credit card wallet that each of us had been gifted. Hers ran like crazy.... SO... I soaked mine overnight in vinegar and no bleeding.... same fabrics... modern looking so I'm presuming they were within the last 5 years.
I only purchased Retayne once in my life and while I was soaking my white & navy quilt in it in the bathtub, trying to get the blue out of the white fabrics.... I read a notice on it..... It said something like that it wasn't allowed to be sold in the state of California because it contained a known carcinogen..... I threw it out... and have never purchased it again. Since then I've read that it contains formaldehyde but many products used these days do... ugh.... I'm still not up for using it.