Here's a closer picture of the cardboard wrap. There is a lot of excess twist in that yarn. Look at the top edge of the cardboard. Each bead is separated by its own wrap around. Now to crochet across the top of that cardboard edge to keep all of that excess twist from escaping at either end of the line-up.
Once a few rows have been crocheted the cardboard can be removed. Each wrap twists back upon itself trapping the bead in place and creating a fringe that is the length of the wrap. Using this method I can make extremely long or short fringe by altering the size of cardboard used.
This bag is for my very lovely, almost 10 yr. old neice. (Happy Birthday Isabella!) Fear not. There are no actual sea horses involved in this project. I'll post a final picture when it's completed and ready for gifting.