We received this question by email:

I just started Otto the Turtle and am not understanding the instructions after placing the safety eye through the felt.

Our reply:

I believe you're referring to this part?

Cut an oval shape from the white felt and make a hole
in the center. Insert the safety eye into the hole and
the starting loop of the eye lid, then fasten the loop.

You insert the stem of the safety eye, but don't fasten it yet. You insert it through the felt piece, and then through the center of the magic ring (which you haven't fastened yet, as instructed in Rnd 1).

I hope this helps.