Raw hem edge. The fabric was torn on the crossgrain, and this is the original torn edge, as I left extra all around since the fabric draws up and in when embellished, and I lost enough length that I wanted to use everything I had, plus I think the ragged edge adds to the effect significantly.
To strengthen the hem edge, I attached bias seam binding to the inside edge with a triple zigzag (slightly visible), and then ran the Embellisher all over the hem area through the binding and underlining.