Loose stitches after fixing a mistake in magic loop (stockinette)

So . . . I’m knitting my first top-down sweater and it’s been going great. I’m in the middle of knitting my first sleeve (first time in magic loop too) and I noticed that about 25 rows down, I somehow dropped a stitch and twisted another next to it in the ‘crease’ where I turn my work to knit the other side of the loop (does that make sense? I don’t know what else to call it). In any case, I unraveled the 2 stitches down to the row where I had made the errors and crocheted back up to the top with the same gauge crochet hook as my knitting needles.

Now, the knitting is super stretched out and looks horrible! I’ve attached a photo for reference. The gauge shouldn’t be off this much as I was simply replacing stitches that were there before. Is there any way for me to fix this without ripping out the sleeve down those 25 rows? I’m very new to magic loop and probably unknowingly committed a magic loop crime. Please help, and thanks in advance!

Did you ladder up both the dropped and the twisted sts? Try tugging a bit horizontally and vertically to encourage the sts on either side of those sts to take up the extra yarn. You might also try using a crochet hook to distribute the yarn into the sts on either side but usually the gentle tugging works.