Black Mockingbird is correct there are no backing flaws it is good. Razorback Yes rule #1 follow the grain. It is not a drastic issue and bbell wants confirmation of what he needs to address. I just realized and want to correct, I should of said grain violation, not ring violation.
At 4" above the fades and if the left side is the way towards the tip then yes there is a chance that the area left of the pin knot will lift as he gets farther into the tillering process.
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This is bbells third stave, he is aware of the possiblities and he wants to carry on with working the bow. As black mockingbird says the bow is talking to bbell. Since none of the gurus are giving him the advice he is seeking. This is what I would do if it was my stave:
First I would round over the edges of the back, continue with floor tiller, get it to low brace height keeping and eye on problem areas. Once braced I would flood the area in question with either super glue or thin hide glue, continue tiller and make sure that at no point in the tillering process the arc on that side became unbalanced.