Bag of Folding

This magical bag has unlimited space, similar to a bag of holding. HOWEVER, it will carefully fold every Item or creature placed inside. In addition, whenever clothes are placed inside the bag, they get cleaned of every kind of stain (Mud, food, blood...).
The opening of the bag is 20 Inches in every direction. 
A creature that gets trapped inside the bag takes 5d10 Bludgeoing damage every round, as the bag will fold it. Trapping a creature inside requires the creature to be small enough to fully fit through the opening. Weapons, kits, potions and other kinds of non-wearable items that are placed inside the bag will be destroyed after one round.