Cloth Bind - Self Collision settings

[MeHoo]

Ok so.. I played around with my setup. I took your tearing cloth file and made changes.. the problem, I think, was that I added the particle physics above the object test (that holds the corners). This results in some pinched verts inside of my collider. When I move that operator below the Object test, all is well. Does that make sense?

Thanks again for clearing this all up and the added file. I think part of the issues have to do with stretching cloth. Is that because the particles get too spaced apart perhaps?