Garter-stitch bottom edge?
i-cord inner band?
Curls in (you can't even see it in this picture, it's so curled. It's on the right edge here).
Advice? I know there's a couple of ways to knit applied i-cord. I used the way where the stitch you grab from the knitted garment is actually knit together with the last i-cord stitch. I know you can also pick up a loop of working yarn with that stitch and then do the k2tog, which might change the way it lies. You can also do it from the back (but I think that looks sloppy, and it flips to the front). There might be other hints...
Baargh. This is SO close.