The spacer shouldnt go around like its stuck to the axle.
It should sit still in the seal/gasket while the wheel and gasket rotate, it doesnt damage the seal this way.
The diagram shows it with the lip facing out, but iv had it the other way with the spacer mounted in the seal for 6 months with no issues on my 200.
Its just a trick that I was told by the New Zealand GasGas manager so that the spacers dont fall out when the axle is removed.
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