You are using Rayon thread on cotton fabric? If that's the case that is probably why it's splitting. Rayon thread isn't usually as strong. Also, if you use too long a piece of thread when hand quilting it can fray because of the friction of pulling it through the fabric repeatedly.
I use Coats and Clark 100% cotton hand-quilting thread when I hand quilt as well. I tried Gutterman before and it frayed and knotted too much for me.



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