NH35 movement - did I brake it when I inserted a new stem?

I am a newbie assembling a watch using the NH35 movement. Everything went well until I cut the stem to fit the case. I reinserted the stem into the movement after I cut it. After it went in as far as it would go, it would not wind the movement. Instead, turning the crown moves the minute and hour hands, while the second hand continues to move. When I pull out on the stem, it will not click into any other position.

I was careful to only hold the stem where the threads are when I cut it. I tried replacing my cut stem with a new uncut one and also the stem that was in the movement when I received it. Both of these gave the same result. After rotating the watch to wind it using the rotor, it will run for about 20 minutes.

Does anyone know what I did wrong to cause this? Is there a way to fix it? When I assemble another watch, what steps should I take to avoid this happening again?