Sounds like "thread nesting" also called "bird nesting." Usually, it is a result of incorrect threading, incorrect tension, or the thread not being properly seated in the tension disk.
Remove the thread.
Install a brand new needle.
RAISE the presser foot and rethread the machine from the beginning making sure the thread path is correct.
Set the upper tension to the midway point between low & high numbers.
Test.
The correct tension is achieved when the upper and bobbin threads meet in the middle of the fabric. If upper thread is looping under the fabric, the upper tension is too loose. If the bobbin thread is appearing on the top of the fabric, the upper tension is too tight. If it is difficult to determine what is happening with tension, try using a different color thread (but ALWAYS the same type & weight) in the bobbin as what is used as upper thread.
Tension is static--it needs to be adjusted whenever a new project is begun because the needle/thread/fabric combination will affect the tension. A sewist should become comfortable with adjusting the upper tension on a piece of the scrap fabric before actually beginning to sew the project.
The needle/thread/fabric need to be compatible to get the best result.
All About Needles
Sewing Machine Thread Bunching Up Here Why
http://www.chholderby.com/tips-tricks-and-help/part-4-bird-nesting
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