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I got it! I didn't realize you were supposed to retract in both directions, I was only retracting when i was going to the right.
This is the technique I've been using, but it hasn't gotten me above the peg. I guess I just need to keep doing it?
Has anyone been able to do World 7 - Level 15? I've only been able to get about halfway around the peg, I don't know how to get past that.