It was nothing that you did wrong. It was totaly due to a cheap, poor quality vise. Unfortunately, you learned the hard way about the false economy of fly tying kits that do not have quality name-brand tying tools in them.
That said, the Thompson Pro Vise is one of the under $100.00 vises I recommend to people. It will last a long time with minimal maintainance, has magnum and a midge jaws available for it that are inexpensive (under $15.00 usually). And it has the original draw-collet design that Thompson pioneered and patented 80 years ago. Also, Thompson stands behind there products (which are made in Illinois) and will replace parts that wear out free of charge if you send the vise to them.
I have a Thompson 360 SLT (a fancier rotary version of the Thompson pro) that I tied on for 13 years commercially (100,000 or so steelhead flies per year), which was sent to Thompson twice during that time for replacement of worn our parts. Thompson vise co. never charged for the parts or shipping the vise back to me, and they did so in only 1 week. This vise is now being used by one of my sons because I "retired" it when I got a Dyna King Baracuda 6 years ago.
Another good choice is the Griffin 2A vise that is in the same price range.
Above all, do not buy an imported copy of an American vise. They are all poorly and cheaply made; thus, are a waste of money.