I Love the Prettywrap! Great Invention. Reasonably Priced. Stays on ALL Night Long (Regardless of how Sleep Challenged You Are). Looks Cute. And Your Hair is Always Nice, in place and Moisturized the Next Day!
What I do is use two scarves, and for the one that I tie at my forehead I don't tie it in a knot, I just tie it once and I don't do it ridiculously tight. Then I put a scarf over top of it and tie it in the back.
How about just crossing the scarf over at the nape and tying the knot at the front over the scarf? If I remember, I'll take pics and add a photo to show what I mean.
As for baggying, why not use Saran wrap? No knot needed and no elastic to cause friction.