I have deleted the "%%temp%%" directory many times without any side effects. The files that end up there are usually buffer files and the like. (And quite numerous)
Are you sure you didn't erase a directory named "temp" instead? (without the %%'s) I usually create directories named "temp" to put my picture files while I'm working on them but later I must remember to move them some place else otherwise I risk deleting them. (You cannot easily put your stuff in the %%temp%% directory, normally it's managed only by the system)
Another possibility (but I'm reaching) is that your original pictures were no longer in your system but you were able to access a cached version of them that still remained in the %%temp%% directory.
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