I had the same thing happen to me last year using a Hovabator. I believe the heating element is to close to the egg container. I removed the wire rack and filled the water tray full of water. For the egg container, I cut a very small air hole in the container. I cut 4 pieces of PVC pipe to support a piece of light diffuser panel above the vermiculite. The diffuser panel looks like plastic grating. I saturated the vermiculite so water was just a little above the vermiculite. The diffuser panel should be slightly above the media so when the eggs are placed on top of the diffuser panel they don't come into contact with the water or media. I place press and seal on the top and close the lid. I make sure to keep water in the incubators water tray as it dissipates. I had several eggs that appeared to be deflated to a point I thought they wouldn't hatch, but they all did. I kept the incubator temp at 89 F. This year I built a large incubator to resolve the issue. Good luck!