I was testing just the wax and a couple of different dyes -- when the one piece turned into a pretzel, I decided "just wax, no dye" would look fabulous.
I've had somehting similar happen before when making a sheath out of belly leather - when I used my heat gun to melt the sno-seal, the sheath shriveled up. that one I semi-saved by heating it up and inserting a piece of 1/4" plywood cut to the same profile as the blade.