That's what you should have in step 7:

Squash fold like indicated.
Your model should now look like this:

View from above:

Squash fold on the marked lines:

Like this:

View from above:

Pull the trapped paper out:

Back to normal view, your model should now look like this:

Step 10, squash fold as indicated:

During squashing:


Done:

Now your model looks exactly like in step 11.
Hope that helps.