What can go wrong if you grasp the handle of skillet with a wet thin dishcloth?

Tip: Never EVER say "what could go wrong?" because something will because you said that. On that note a lot of things. If the pan is hot enough It could turn the water into hot steam, doesn't work well with hands. You are also likely to drop the skillet when you get it wet, and the water won't protect your hand for long. You're better off using an oven mit.