You shouldn't have to redo the cake...but I think you need to peel off the fondant and start over as it looks like the white is all one piece? Then you put the blue pieces over it? I just don' t know if you can smooth that out.
Before applying fondant, your base cake must be flawless as imperfections will show through. I'm not sure how you prepared your ball, but I always completely ice my cakes first...not just crumb coat, but completely ice, chill until cold and hard, then apply fondant. Many people do it many different ways...that is my way. Many people use ganache under the fondant, but I would get the customers approval first, so they are prepared for a ganache base under the fondant. My customers want butter cream because they all peel off the fondant. Round balls are very hard to cover. I can only say to watch some you tubes for some pointers.
The scarf is a great camouflage..but your bulging is above where the scarf will be.
Good luck and let us know how it all turns out.