I addressed a problem years ago on MMD with modern spinet players
tearing rolls on rewind, but your problem is different: the upper
spool is out of alignment.  You actually should be able to play a roll
with the automatic tracker disconnected.  If it is constantly shifting
the roll during play then it's not adjusted correctly.

Place a roll on the unit and unwind paper until the first playing notes
appear.  At that point set the tracker so that the holes line up over
the tracker bar holes.  Do not move the pneumatic but adjust the rod on
the tracker so that the holes line up under no power to anything.

What is happening currently is as the piano goes to rewind then the
feeder roll is moving back to center; however, when you played the roll
the tracker system had shifted the roll to the right.  When the unit
goes into Rewind then the feeder spool goes to its center that was too
far left.  Hope this is clear.

"Laissez les bon temps rouler!  Joie de vivre!"

Don Teach
Shreveport, Louisiana - Happy Mardi Gras 2015