Yep you are definitely out of collimation, and yes you can use the defocused star. I suggested the paper trick to get you close during daylight hours and then use the defocused star to get it spot on. Thsi saves time. Don't forget you need to do final collimation when the scope is perfectly cooled.
With the initial defocused star use low power and defocus until you can see 2-3 rings. Then move the collimation knobs or screws to get it closer. As stated don't forget to recenter the star after each movement. One you get it looking reasonably close, use more magnification and check the collimation again.
With the white paper trick I got it close enough to collimate with my C14 and a 9mm EP. That is 434x which is about where you want to end up.
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