So after receiving my Loop 1080 in the mail, I messed around with the adjustable gap for a bit. After some time, I noticed that the gap wasn’t moving, and that the key was very loose in the key-slot. I would really appreciate some help as to fixing this or replacing it. Thanks.
I have had a problem with this too. My screw head stripped out. 
Yeah, it sounds like either the axle key or the screw head on the yo-yo has stripped.
Did you purchase it from us? If so, give us a call or send an email to contact@yoyoexpert.com and we can help you out!