You cant tighten the tensioner. When the motor is off there will be some slack on the chain especially when pulling up like that it will easily depress the tensioner. If you have an old style tensioner probably best to upgrade to the new updated style. It seems excessive depending on how much you pulled up on it. When the motor is running oil pressure pushes on the tensioner creating its full tension. Even with the upgraded tensioner you will get slack between the gears as the cam lobes come off the rockers the intake cam will turn forward advancing itself a lot of times and thats why you will have slack in between the gears like that.
When resetting the timing just turn the cam to remove the slack between the gears and also puts the slack on the tensioner side so you can get the tensioner back in without issues.
Anyways put it at tdc with the lobes pointing somewhat away from each other if they are still even that close. Then see where your dowel pin locations are at and see if there is 20 pins between the dots on the gears.
When resetting the timing just turn the cam to remove the slack between the gears and also puts the slack on the tensioner side so you can get the tensioner back in without issues.
Anyways put it at tdc with the lobes pointing somewhat away from each other if they are still even that close. Then see where your dowel pin locations are at and see if there is 20 pins between the dots on the gears.