1.) The SKF bottom bracket is designed to fit in 73mm and 68mm bottom brackets. For use in a 68mm bottom bracket (like the Bushnell), the SKF comes stock with a spacer to take up the extra width. The instructions show how to use this spacer here:

2.) Without the spacer, the red cup sticks out the distance of the spacer. Compare the two installations below and you will see that when installed without the spacer, the cup stops short of a full tighten.