Two possibilities, really. Either the blades have reversed their normal position (imagine it's a lot like scissors, the blades are flat on one side and angled on the other - they work only if they're in the right position). This can be fixed.
Or, (and possibly the case based on your description), they're actually damaged (you mentioned the chip). In that case, as they rotate, they'd catch there on the canvas and then you have your problem. Indeed, it might be both.
I've never actually heard of them being chipped before - they're generally very robust. However, they are user-replaceable. If the printer is within warranty, contact your dealer and they should be able to sort you out. If it's out of warranty, contact your dealer and get a replacement blade. If it's out of warranty you could also take the current one out and see if you can fix it, but if you cause more damage you'd obviously be up for the costs so possibly not worth it.