Looking good. What I did is re-affirm my memory and instinct with a quick look at a sewing guide. Scrunchie is made thus; cut a rectangle and sew it into a tub. Flip. Thread an elastic shorter than the tube and tie the ends together. Hand-stitch the edges of the tube together to make a torus. The elastic pulls the fabric in, "scrunching" it. For extra points, if you have fine hair you might twist the finished scrunchie into a figure-eight, creating two connected loops. Also, instead of a single rectangle of fabric you can use two, laid on top of each other and stitched down the two side-seams lengthwise. Then you get a bicolor scrunchie with one fabric more-or-less inside and the other outside. Me being the kind of geeky person I am (plus I have an abhorance towards manual UVmapping), I started with a torus and a ring and ran a cloth simulation to scrunch it. This sort of works, but what that method really needs is to bend a cylinder into a tube, then after welding it, it can be scrunched as above. Another advantage; you can export more than one stage of the sim run and make a "more scrunch" morph for the final prop. And this is why it takes me forever to finish a model!