First off let me start by saying that this is a very easy to use and affordable editor. I actually learned about Sketch3 (developed by Bohemiancoding.com) from attending courses by BitFountain.io. I signed up for a few iOS development courses and the Sketch3 design courses. I started dabbling with it to get familiar with the interface and ran into a snag.
I was able to correct it by deleting the affected portion of the image then I copied the left-top portion of the image, flipped it and put it in place of the deleted one. I sent a tweet to both @Bohemiancoding and @Khari to see if they could shed some light on what I did wrong. Hopefully it will be something silly and not an actual bug in the software.
I figured I did something wrong so I stepped through the entire process again and suspect I had a mishap when I joined some of the images together. Turns out I did and scaling is working as it should.