The fabrics were developed in Atlas for an unknown purpose.
Some point before the events of RWBY, Spider had allied itself with the Kuchinashi organization, Wave and it's leader, Lemon. Together, they'd perform a heist on an Atlesian shipment in the city of Argus, stealing a newly-created fabric material that adapted to light, making the wearer invisible. Spider stole the entire shipment underneath Wave's nose, thus invisibility cloaks became commonplace amongst their spy network in Mistral.
They later had a piece of this fabric fashioned to create a skintight outfit for one of their spies, Chameleon.
- It is likely inspired by the invisibility cloak from the Harry Potter franchise.
- The invisibility cloak turning it's user invisible is similar to the Cloak of Displacement found in the ruins near Kuchinashi. Unlike the Cloak of Displacement however, these cloaks don't require their user to sacrifice part of their Aura to use it.