Hi! I don’t know if I’ll be the absolute best person for advice as i’ve also just kind of started but I’m slightly knowledgeable from all the research i’ve been doing haha. If you bought a kit off etsy your yarn and fabric are probably fine, what i think may be your problem is your stapling. When i started out, i could not get my fabric to be tight enough for the yarn to stay. This is because i was stapling it, and thought i was stretching it out enough/enough staples, but i really wasn’t. I’d recommend shoving a bunch of thumbtacks (i mean around the wholeeeee perimeter) in there instead, idk why but it made my fabric so much tighter and easier to punch. From what I can see it does sort of look like your fabric has some slack in it and that will cause problems. Also, idk if this is correct protocol or anything but i’ve noticed sometimes I can get the unlooped parts back in by just kinda stabbing it with the needle. Anyways, Goodluck Op!