I'll rip it apart tonight and see if it isn't installed properly. That is my concern because the backing of the carpet was ripping. I thought maybe there was another cap that screwed onto the rod.
im guessing that it is just overtightened.. make sure that the cover is latched into the rear-trunk trim piece, of it isnt latched into there, it is very easy to not know how far down to tighten the bolt.
I took it all apart and everything looked OK. I think maybe it was tightened to much. Right now i have a rbig red plastic lid on it to protect the carpet. I'm gonna see if i can find something to prop under it before tightening it, so the boilt doesn't stick out so much..