Thank you for all your answers. This is the first time I have used this type of quilting method (as suggested by the pattern author when she spoke at our guild)and I really feel that the quilting is the culprit here. I am going to wash it and hang it to dry. If the problem persists, I will think about removing the binding on the sides and resizing it. Thank goodness the problem is not on the bottom because I machine embroidered the label along the bottom binding.