Is it safe to use, or no?
I doubt one would die from it 0_0, but would boil it & bake it, if I tried it. All wick materials have some negatives some may consider non safe or less safe. I have not used Mercerized/Mercerised cotton as wickage.
Mercerisation means it has been bathed in sodium hydroxide/lye & then the lye is neutralized & washed out. Essentially it preshrinks the cotton. This is one reason I suspect is why a cotton wick needs time to settle even if it looks wet, as without Mercerisation it takes time for the fibers to swell & expand but the fibers also need to shrink after the swell & that is a key part of the need to do a settling wait period once the cotton is first wet, as it does shrink while in a wet state. [dryness is not needed for shrinkage.]
Vivi Nova users often see the shrinkage where wick meets the slot. Some pull it away, or fluff it out from the slot though I most often do not & just leave it. I use it as a gauge to visually know the absorb then shrink process is complete.
Here is a pic of the wick shrink effect upon a slot of a ceramic head. The image on the left is a fresh build & the image on the right is a different build but it shows the shrink/suck after settling is complete(& then some). I suspect shrinkage is partially responsible for the hug effect.
Here is an image of a Vivi ceramic mod I built 8 hours ago showing a less vaped after shot of the settling sucking the slot.[that's kinkE o_0]
I found this article that says cotton treated with the Mercerisation process has thermal decomposition @ lower temps than non processed.
from my link: According to the results obtained, untreated cellulose begins to decompose at a higher temperature (Ti = 368 °C) when compared to mercerized cellulose (Ti = 307 °C). It is seen that there is a significant difference between mercerized and untreated cellulose in relation to their respective thermal decomposition temperatures, which may be related to the difference in crystallinity between untreated and mercerized linters.
a neat-o image from the link
Thus I will avoid it for that reason.