That would be the chicks yolk sac that it didn't fully absorb, what day did it hatch on ? did you help it at all or did it hatch on its own ?? hopefully the chick will absorb the rest of it and be ok.
If you could get a pic and post it that would help us be able to give you more advise
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That's why it didn't absorb the yoke, it wasn't ready to come out yet. If it's to early it will die from infection. If they are hatching late your incubator temp is just a little low.
At this point, the best thing you can do is to leave it in the incubator. Make sure it's on something beside the wire. It may...or may not...absorb the yolk. And it's a toss up as to whether the chick will live. There's really nothing you can do right now except wait and see. Keep it separated from the other chicks...they'll peck at the yolk sac.
Even though it had zipped, it still had not fully absorbed the yolk and wasn't ready to "come out". Sometimes they'll zip and stay that way for several hours before popping their lid and coming on out.
I have had to help several chicks hatch and it is a safe process as long as you know what you are doing. You can't just jump in there and start tearing the shell off. You have to use extreme caution because every move you make could mean life or death for that chick. Everyone is not made to do this kind of procedure.
I'm sorry this happened and I hope the chick makes it. Either way you should let this be a learning experience.
I agree that the chick didn't need any help. However, the deed is done and constructive criticism would have sufficed.
If you incubate eggs you are taking the natural process of the embryonic growth and hatching and making it,well, not so natural. In this situation problems could very well arise and as much as we may like to be, we are not mother hens. Many things can go wrong so just make your choice. To help or not to help? I will not stand by and watch a chick grow weak and die in the shell. That is my choice and I stand by it 100%!!