Importing Cloth from Blender not working correctly

Trying to make a very simple flag, there’s not even a pole, it should look like it’s nailed on a wall. I’m using Blender and the APEX tool and it’s giving me some very strange results.

Here’s the mesh with no clothing:

123582-unrealcloth1.png

Here’s with clothing:

I followed Geodav’s tutorials and found a bunch of topics with similar problems but no solutions that solved my problem.
Btw it has only one single bone at the top. Maybe that’s the problem? Tried with 2 and got weird results too.

Thanks.