Oh, this brings back memories for me, Bob was/is exactly the same with bedding in his crate. The only thing I had a little bit of success with was an old piece of carpeting, well, when I say success it lastest longer than anything else! Can`t even put it down to puppy stuff with him because I tried again with a quilt about six months ago and all went well for about 6 days, then one morning I get up and there was a hole in it and some filling on the floor, think I just got up in time to stop very much going into his stomach. Right now he doesn`t have anything in there, but doesn`t seem to mind even though he spends a lot of time in there, of his own choice I may add, not locked in or anything.
Sorry I can`t help, only sympathises(sp). Good luck.
(if you do find anything that works with Mr Malone please let me know because it might work for Bob also. Even though he doesn`t seem to mind I still feel guilty he has nothing nice in there to lay on)