Do you have any of the fabric glue? If your piece is that small, maybe touch the back with some of it and that will work for you. Good luck.
Have you tried shelf liner between the fabric and top hoop? Its non-slip rubbery type; helped me a lot. You simply cut out the center until you have a type of frame to hold the fabric in place- Good luck.
There should have been tack down stitches holding the app piece down securely. If not, try a different design. Try some of Sew Swell's designs, they are great.
Jo
try slowing your machine down to the slowest speed you can...
I HAVE DONE THIS EXACT SAME THING, & LATELY TOO UNFORTUNATELY I DON'T HAVE THE ANSWER! BUT HOPEFULLY SOMEONE ELSE CAN HELP US BOTH!
Are you able to pin it and remove pins as you go? I am feeling like everything I touch today is flling apart. It must be something in the air. It can't be us!