The video about using the hammock in chair mode does not show all the instructions. On the "in action" page they say to unhook a side tie out. grasp the reinforcement patch with your left hand. Fold the hammock in half by pushing the o-ring to the other side of the hammock and sit on it like that. same general idea for lounger mode. Fold the hammock in half.
I don't have my system set up so I can't try it out, but I plan to the next time I get the chance.