Why does my shirt look like it has changed colors since applying the iron on vinyl?

It’s normal! This change in color will be most noticeable on colors like mid-toned colors like Red, Royal, Purple, and Green. Other colors will have this effect also, but it’s less noticeable.

When you apply heat to a fabric that contains moisture (which virtually all do), the moisture is heated and turned into steam. This is the “smoke” you’re seeing come out of the side of the heat press when you’re pressing. It’s actually steam! As moisture is turned into steam and removed from the fabric, one thing that happens is that the color of your garment is it will darken where the heat press touched it. 
So is my shirt ruined?
Not at all! You’re probably glad to hear that. Since moisture was in your fabric naturally because of the moisture in the air, it will be naturally returned to your fabric over some time. This will all depend on your climate you’re in. If you’re in a dryer climate, it may take a little longer than if in a humid area. But generally you will start to see color returning back to it’s normal color within 10 minutes of your shirt cooling down.