Excessive displacement

I am still working on this topic of assembly device. I have tried several options and configurations but I did not succeed running simulation completely (usually, when first contacts appears, simulation is stopped at step 1). Some more iterations have been achieved if only linear elastic material model is used.

If anybody could give some support, I will appreciate.
The latest model is available on this link.

Thanks in advance.

Many thanks @celikan.

Best wishes,
JW

You could try moving the top part down a bit so that the sphere is initially in contact with the edge of the cup. By the way, contact there can be quite tricky. Try with various non-default contact settings.