He shifted around a bit during his time in there and his position wasn't perfect. The fabric should reach all the way to the inside of his knee. He was a bit lopsided by the time he woke up, but I guess he didn't mind too much!
I also use a Babyhawk Mei Tai, an Ergo, and a Beco Butterfly. The Ergo is my go-to for older babies (my toddler still loves it), but I think the Moby is my new favorite for a newborn! I was afraid to use it with my first baby and even with my second, but once I tried it...true love for both baby and me!