I think this is just due to how humid it is where you live JAG. That humidity gets into the hide, and with the snake in there as well it just gets trapped causing your paper substrate to become damp. My only concern would be from the animal sitting on wet substrate for an extended period of time, but as I have no experience with things like scale rot, I'd rather leave that to more tenured keepers to comment on. Are you finding this to be a constant issue? There are a handful of other keepers here who live in high humidity areas in the U.S. that could probably suggest something better than paper to use.