The bobbin tension is way too tight. Adjust the bottom tension until you have a nice stitch when the top tension is at four. That means your knot is made and ends in the middle of the fabric.
SOURCE: Singer CE-100 Embroidery thread bunches up underneath fabric
I had this problem and it all came down to using the wrong backing. I kep trying to use tearaway on everything but WRONG. Using the proper backing corrects most problems. Good Luck!
SOURCE: Singer 6217C Bobbin Thread bunching
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SOURCE: Thread is bunching underneath fabric
Needle in correct? Be sure your bobbin is not in upside down and turning the wrong way. Possibly the hook that the bobbicase fits in/on has been hit by a needle and caused a burr that is catching the thread as it comes around. The burr would have to be polished off or hook replaced. The machine could be slightly out of time also.
SOURCE: Thread bunching up on bottom of fabric
Try making sure that the thread is all the way in the tension disk then test it out. I had a similar experience with an old machine.
SOURCE: I have a WHITE 3300 EMBROIDERY MACHINE and the
Refer to your machine for cleaning the bobbin area.
You will need to clean this area often as lint and thread snips can build up can cause the bobbin feed to malfunction.
If this continues after you have cleaned the machine, the timing may need to be adjusted by a sewing machine tech.
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