Ah! Now I see what’s the problem. At the moment the Skeleton Deform layer have limited influence area. Everything outside this area gets cropped.
See the list of “missing pieces” in my weekly report #39 ([url]Konstantin's weekly report #39]):
Obviously, we will need to add some handles to show and edit this area. Much like the same as Warp Layer currently have. Though, this is still on TODO list.
As a workaround, I can advice to make image smaller so it will fit into the Skeleton Deform influence area. 