Explanation:

The red arrow – this shows the fringe around the appendix. It is used to catch rain or collected condensation to avoid dripping on the occupants in the basket. It drips outside of the basket.

The blue arrow – once the envelope is inflated the inflation sleeve is tied off at the appendix. A clothesline is tied around the open appendix and is released just before lift-off. The appendix at the bottom of a gas balloon remains open during the flight to allow for the expansion of the gas as the balloon gains altitude.

Balloon Reported Lost