Shrinkwrap not seeing parts of mesh

So after googling till my fingers hurt, I cant seem to find any solution to this. Just as the title says, everything is shrinking fine except one part, where the shrinkwrap mesh doesn’t seem to see the underlying mesh. It IS shrinking, just not to the closest mesh, its stretching the entire cylinder part backwards.

SW3 is the shrinkwrap mesh with Subsurf and no shrinkwrap active
SW2 Shrinkwrap active
SW1 Is the Shrinkwrap mesh without subsurf, and wire frame showing the mesh is right, just won’t shrink correctly.