Hy squeegebob, If my memory is correct the "crush sleeve" bulge goes towards the "pumpkin" or pinion gear. The crush sleeve is what establishes the preload on the pinion bearings, it is a one use device, once it has been crushed it really will not perform its function correctly if reused. If you purchase a new one and torque the pinion nut to spec. you should reestablish your proper bearing preload, hope that helps.