He's probably doing it when he's tired. Loki does it to "fluff" the blanket, although if he's on OUR bed he doesn't get anywhere, but I try to leave his fleece blankets around so he can "fluff" one if he wants. Usually he will "dig" and then move over 3 feet and lie down. All that work for nothing! It's so cute and funny. I compare it to a tired kid rubbing their eyes.