Hi Designer 1234,
If near the top of your hat, purl 3 rows, knit 5 rows, then e-wrap loosely one more row, knit over, then k2to (take the loop on peg one put it on peg two knit 2 over, peg one is now empty, continue around the loom. If there is one peg left e-wrap it and knit over.) Wrap the working yarn tail around the loom 1 1/2 times, cut, thread the yarn tail on a big eyed needle,
sew up through each loop on a peg, check to see that all were sewn through, then remove from loom, draw tight, sew to finish, cut tail, and the hat is done. See picture attached, Moon Loomer I
Designer 1234 here: I just tried my first loom hat (ribbed with a band around the bottom. I have instructions - however I couldn't find any information as to how to drop off the stitches. Then remembered this section. I will go and check the places you suggest. I find it quite interesting that so many different results can be done on a loom. Mine is a Knitfty Knitter medium round (for hats) look and is made by Prove Craft & Novelty Inc.
I will go look but will likely start a topic asking for help. I have looked at some of the work you all do and it is fascinating! Shilrey (Designer1234)