Answer:
Step-by-step explanation:
A million years ago, when dinosaurs were still roaming the earth, our English teacher came into the room and said to us. Look! Running up a tree, I saw a squirrel. Then when we had finished looking out the window to see if we could see the squirrel, she said to us. "What's the problem with that sentence?"
Trapped. A teacher joke.
Then we caught on. There was no squirrel, but there was a problem. Who was running up the tree?
You have the same difficulty. The punctuation is fine. The problem is in
Hope shouted my name, running toward me with a big stuffed animal.
Who exactly is doing the running? It sounds like your name is doing the running. You have to fix the order.
Running toward me holding a stuffed animal was Hope. As she ran, she was shouting my name. Even that is not totally correct. Let's try again.
Holding a stuffed animal as she ran toward me, Hope was shouting my name.
You can report this as a problem. The punctuation and Capitalization are fine. The order isn't.