I would worry about it personally. If she wants to shred the liner, let her shred the liner.
Does she have shreddable toys? Foraging toys? Things to distract her
OK. It's just that it's such a mess! Especially when there's poop already on the paper before she starts pulling at it. She has been given some foraging toys & shredding toys, but it's not enough apparently.
I removed the paper from my U2's cage bottom years ago for this reason. Eclectus and U2s are both fairly hormonal. ChrisMD is an eckie owner, and I am not, but I will say that in hormonal birds, shredding is a nesting behavior and can lead to egg-laying in females (which can lead to medical consequences).
Make sure you provide at least 10 hours relatively uninterrupted sleep on a nightly schedule..12 is okay too, but not less than 10...
No access to shadowy spaces, boxes, bedding, partially covered anything, under furniture, hunts, tents, shadowy laps etc.
Reduce or eliminate access to nesting materials (e.g., shredding toys that seem to be a fixation)
Pet on the head and neck only. Walk away/ignore any hormonal behavior involving you. Provide plenty of time to forage and play outside of cage, along with wooden toys of various textures.
I recently have dealt with a sudden egg issue (after many years of adulthood without), but the tips above have worked for me for years and I think the reason for Noodles' recent egg-laying has to do with the early swapping of an egg for a dummy egg that was too small...So, while I don't seem very credible lately lol, this stuff really works.
You could also try putting unfamiliar objects on the cage floor where your bird is chewing--that worked for me as well, until I got tired of washing them.
This is kind of the problem. She hasn't been given a solid 10 contiguous hours. It's more like 8. She does nap a bit during the day, when she's not fixated on the cage liner paper. Her owner (my roommate) is mindful to not do full body stroking & cradling any longer, just head and chest strokes. She does get about an hour of time outside the cage, but her owner is trying to increase that.
The issue started about a year after she'd weaned her baby. Her egg laying was subsequently prolific. Her owner didn't really understand what was going on. And then the egg obstruction happened. The bird almost died. She now has a chip inserted that effectively nixes the egg creation. But that's not stopping her hormonal imperative.
Sadly, she's only happy when she's out of her cage and cavorting with her mate, as well as nesting activity in the toy crate on the couch. Her vocalizations were never quite varied, but now it's almost always an ear piercing squawk. Often she'll get into a mode of at least 1 or 2 per minute. And she'll tend to do it when there's someone in the adjacent kitchen. It feels like she's saying "@#$%&* let me out!" Even her facial characteristics seem to telegraph unhappiness. But she's not plucking. Her weight is good. But her vocalizations are such a stark contrast to the 2 males (her mate and her juvenile boy), who are so wonderfully varied & cheerful.