I'm also not confident removing the flaps will stop the rubbing against the inside wall either.
Remove the mud flaps.
Lift up the liner.
Wrap a 3lb framing hammer with a towel and tape.
Heat up the pinch weld so it's warm, will help reduce chances the paint will crack.
Hammer it down flat.
Alternative is cut slits every few inches and hammer down in sections.
Hit it with some primer and paint.
Heat the fender liner and push it flat.
Using a blunt object worked best. Even a roller, ball or roll of tape.
It will cool fast, so you want it to set flat before it cools.
If you can press it into place faster than it cools, it helps to spray cold water on it to set.
Once it's pretty flat and sets close to the metal, trim it to where you can tuck it in.
Original link: https://www.youtube.com/watch?v=p1zDYOGCwnk&t
Original link: https://www.youtube.com/watch?v=HPgfjqOe6y8&t
Pinch weld. They cut it. I didn't cut mine. Hammer the whole thing down without cracking the paint and it was fine.
Some people do cut part off. Some cut slits. It would be easier to hammer with the slits. I just liked the idea of not cutting.
Should start at 250 seconds in.
Original link: https://youtu.be/0v2h6pBzIrs?t=215
This guy cut slits and hit his inward. Just don't hit it like him. I took mine a lot further up and kept it all under the liner.
Original link: https://youtu.be/HVjMacrVjCk?t=39
One thing to keep in mind. This spot sticks up and I was rubbing on the tab. I tried to bend it further back. But if you do, you'll have to support the the other side of the fender or it'll sort of pry it out of line. Best thing is support it and push it up. Bend it down and straighten it out. Then create a new 90* bend up further back.
I'll take a pic of mine when I get out.