I understand the eaten portion of the (let's call it a flag) but the part that seems to be falling off is larger than the part the caterpillar seems to have eaten. I don't get that, but it's an interesting idea.

My english is not so good, so i hope that you will understand.
Catepillar is hungry so she eats pictures of leaf (she don't have nothing else to eat), she try to eat the way to the part of a pictures where is a leaf.
Falling part is empty (don't have leaf) so that catepillar didn't eat that part

Maybe you need to move the falling part so it is not infront of the part with the leaf on... maybe as though its going out of frame?

Now is to late for thet but anyway thanks for the tip