One possible explanation. The other being that like many “flea market” style caps, or caps with “3D” style art, the emblem isn’t printed on the cap or embroidered, but is a polymer piece that was heat bonded, glued, or stitched (stitched seeming less likely as I see no evidence- but that could be for other reasons so we can’t completely rule it out in absence of a canon ruling) to a blank cap; and that through age, abuse, wear, or poor quality, that the bonding is coming loose.
Then you could compare it to the hats of the Mario bros.
I just took the liberty of doing so and Mario’s M is embroidery and Luigis appears to be felt glued on. Waluigi definitely has a DIY hat
I just took the liberty of doing so and Mario’s M is embroidery and Luigis appears to be felt glued on. Waluigi definitely has a DIY hat