Question 1: What orientation was the rocket in and what was the speed at deployment? The picture of the tangle is a classic photo of a rocket that deploys while still having forward motion, either vertical or horizontal or a combination of both. The deployment charge separates the forward part of the airframe, which begins to slow down, then the aft end of the airframe basically flys into the deploying/unraveling parachute/shock cord.
Question 2: How energetic was the deployment event? A weak deployment charge that does not give sufficient separation to the two halves of the rocket, coupled with your choice of parachute placement in the middle of the shock cord could cause the same issues as above.
If a tangle like that happens, altitude is your only friend and worst enemy, as on one hand it gives time for the slip stream to unravel the tangle, but also will lead to greater damage potential the higher it went. Luckily terminal velocity of an aerodynamically spoiled airframe isn't very high and it's likely to survive a terrestrial impact!
50/50 split of the length of the cord is never advisable, as it allows the upper and lower sections of the rocket to bang together when under the inflated canopy.
I would move the parachute closer to the nose, not much more than about 10-15% of the overall length of the cord down from it. That way, if there is any forward velocity to the aft section, the canopy is likely to be clear of the traveling aft section and/or be effectively deflected off of it while unravelling/deploying. Also, even on a marginal separation charge you stand a better chance of the parachute being pulled free and getting into the slip stream and deploying.
Then again, sometimes weird s*** just happens.