Once you've stitched around the entire perimeter of the fabric circle, gently pull your stitching thread until the edges gather to the center. Make a couple of stitches to secure your gathers, then knot and trim your thread. Squash your yo-yo flat, with the gathers centered on the top of the yo-yo. That's it!
This yo-yo was created with small stitches, resulting in a wider gathered center. The next two steps show how longer stitches make for a tighter center.