I don't know the full extent of "damage" without examining the printer myself, but from what you describe, it sounds like you may have a chunk of paper towel still wedged under the head or surrounding area (?) I have a few questions and suggestions:
Did you leave the print head resting on the paper towel for a period of time to "soak", or was the paper towel there briefly while cleaning the bottom of the head, as per our print head cleaning instructions?
Did the paper towel get jammed up when the print head moved after turning the printer on?
If so, did it come out in pieces, and possibly not all come out?
Have you checked the cartridges to check the physical ink levels?
If the print head was resting on the paper towel for a while, and was soaked with ink, it may have wicked ink out of the carts by touching the print head, so you may have some empty carts, which will need to be refilled.
1. Check closely for any jammed paper towel
2. Gently clean the bottom of the print head to try to clean it and remove any pieces that may still be stuck there. Our cleaning instructions and videos can be found here: http://www.inkjetmall.com/tech/content.php?133-Printer-Cleaning-and-Preventative-Maintenance
3. If the printer makes horrible/strange noises, and/or the print head bucks while moving back and forth at start up, then I would suggest having a technician fix it for you.
Best regards~ Dana