Why in paper towels?

Because moisture will cause the fresh hot peppers to decay.

Ahhhh - so wrap in paper towels and put in baggie and then put in fridge? Thank you

I agree with the crisper for sure! Peppers that will be eaten without cooking (for salad as an example) I keep in the crisper but for those that I will be using in cooking - I halve, seed, clean and freeze. I even keep a mix of red and green bell pepper and onion - all diced - in the freezer for quickie meals - just pour some out and I'm all set. Great for stir fry, stuffings, etc.

I usually put mine in the crisper or in a ziploc bag. This seems to work for me and I can keep peppers for about a week. I think that if your refrid is at the right temp then you will be good. Sometimes when the temp is off then your food won't last.