beginner - need help with baby derby hat

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I want to make the baby derby hat, but once I make the first 5 popcorns, I'm not sure about how the yarn and hook should be positioned. I'm supposed to work in the chain 1 spaces. Should those end up below the popcorns? It seems like it because the next round of popcorns should be below the first round. Perhaps I am doing something wrong with the first round because I just can't figure out how to work the second round below the first.

Hope that makes sense. Thanks.

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