I would guess that the combination of the open toe presser foot and maybe pressure is causing the problem. I use newsprint for almost everything but when I paper piece I use my straight stitch needle plate and my 1/4 inch foot. I never use the open toe foot because it does not provide enough stability. News print is flimsy and needs the "hold down" that a regular foot gives it. If you are using the open toe foot because of visibility then switch to a clear foot - My guess is that you will be much happier with the results.