Mr. Brklyn.. .... I dont own this particular reel, and, Im pretty much a novice here, so please bare with me. Today, as I was watching the news, I was absentmindedly playing with a reel....C'mon I know you all do it

.......anyways, I started messing with the spool adjustment cap on this reel{Daiwa SL20sh}, and flicking freespool. I definitely noticed a point where the cap would lose contact with the o-ring if I backed it off too far. And at that point it would be too loose to fish with.
Turn it back in and i can feel it catch, and engage. So, I was just wondering if maybe the "yellow cap" on your reel is not engaging the O-ring when you turn it in to get the freespool your looking for? And, if so, what would cause that? Maybe something internally shifting the spool to the side, so as not allowing the o-ring to catch properly.....Just got me to thinking, thats all. Either that, or the o-ring has shrunk and needs replacement...IDK

........
Brett