Knit hats often shrink due to overheated water or drying in a dryer. If your knit hat has shrunk, try the following methods to return it to its original shape:
1. Fill the sink with warm water, add a small amount of household ammonia (also known as soda ash), and soak the knit hat. The soap left on the wool will melt. Use both hands to gently stretch and shrink the piece, then rinse and dry. When it is half dry, first pull it apart by hand to shape it, then iron it to its original size.
2. Simply turn the knitted hat upside down, adjust the shape, and spray the hat with a little water. The next step is to use both hands together, one hand to pull the hat up a bit and the other hand to iron the pulled part.