scrunchie
Concise Oxford English Dictionary © 2008 Oxford University Press:
scrunchy/ˈskrʌntʃi/
▶adjective (scrunchier, scrunchiest) making a loud crunching noise when crushed or compressed. ▶noun (also scrunchie) (pl. scrunchies) chiefly Brit. a loop of fabric-covered elastic used for fastening the hair.
'scrunchie' also found in these Oxford entries:

