These are two different products with very similar names.
The stuff that ate holes in your towel was AfterFix, a substitute for soda ash which, like soda ash, increases the pH so the cotton can react with the dye. It's a liquid sodium silicate. If it dries, it gets more caustic, so you have to keep it moist and rinse it out before it can dry. If acid mixes with it, it can make a difficult-to-remove gel.
Dharma Dye Fixative is a cationic dye fixative, essentially the same thing as
Retayne, though it's a different formula, made by a different company. Same advantages (makes direct dye usable), same drawbacks (potential of slight color change, potential loss of lightfastness). It is more effective to use fiber reactive dyes properly and wash out the excess unattached dye than it is to use a cationic dye fixative to glue the dye particles into place. Dye fixatives wash out in hot water, while properly fixed fiber reactive dye does not. It's a great idea to use Dharma Dye Fixative or Retayne on commercially dyed fabrics that are not as washfast as they should be, but for your own hand dyeing it's better to take advantage of being able to use a high quality dye, such as Procion MX dye.
Paula