Knitted her tent with wool? Give up (5,2,3,5)

I believe the answer is:

throw in the towel

I'm a little stuck... Click here to teach me more about this clue!

'give up' is the definition.
(synonyms)

'knitted her tent with wool?' is the wordplay.
'her tent with wool' anagrams to 'THROW IN THE TOWEL'.
But, I'm not sure how the anagram is indicated.

Can you help me to learn more?

(Other definitions for throw in the towel that I've seen before include "damp condition suggests one might?" , "Make a concession" , "Cave in" , "Give up a venture" , "Give oneself up" .)

I've seen this clue in The Everyman puzzle in The Observer.

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