Non-linear punching simulation exploding

Hi,

I am trying to model a punching simulation in implicit, but upon contact the model basically explodes like the picture below. I have successfully modeled this in explicit, but I would like to try it in implicit and compare. Can anyone suggest why this is happening? When it happens I get an error:

 *** ERROR # 4965 ***
 Maximum number of time increment cutbacks reached,
 analysis aborted.
  
 *** ERROR # 5905 ***
 Severe element distortion detected,
 analysis aborted.

I set NCUTS to 50 using NLADAPT card. I suspect something might be wrong with the contact interface perhaps?