Tub Diverter won't seal
 

4 year old unscrewed the pull up style tub diverter and let it fall out. Put it back together (99% sure it's right) and it doesn't seal well when you try to shower. Water pressure seems good. The plastic holder and rubber ring look fine and there's no scaling or issues I can see in the spout. It's not old either, perhaps 4 years.

?????