illustrator treating transparent background as white

Question

Something weird just started happening where I set up my png sticker files for printing and the transparent backgrounds are being treated as white. Like I can't overlap the transparent outer edges of the designs because it's treated like a white square or rectangle, opposed to just the design. Any ideas on what's going on and how to fix it? I included 2 pics, one showing the overlapping designs on the artboard and the other off the artboard. Thank you!

Ton Frederiks · Accepted Answer

Sorry. My mistake. Here you are.

Thanks, looks like there is nothing wrong with the transparency of that image.

When placed in an Illustrator file, the Links panel says Transparent: Yes.

The regular things to do when Illustrator behaves strange is restart, reset preferences, try CPU Preview.

Ton Frederiks · Answer

Can you share an example file? I you first image there is a grey background covering the other image, just like the white covering the other image in your second image.

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