  The production rate of prompt $\psi'$'s at large transverse momentum at the
Tevatron is larger than theoretical expectations by about a factor of 30. As a
solution to this puzzle, we suggest that the dominant $\psi'$ production
mechanism is the fragmentation of a gluon into a $c \bar c$ pair in a pointlike
color-octet S-wave state, which subsequently evolves nonperturbatively into a
$\psi'$ plus light hadrons. The contribution to the fragmentation function from
this process is enhanced by a short-distance factor of $1/\alpha_s^2$ relative
to the conventional color-singlet contribution. This may compensate for the
suppression by $v^4$, where $v$ is the relative momentum of the charm quark in
the $\psi'$. If this is indeed the dominant production mechanism at large
$p_T$, then the prompt $\psi'$'s that are observed at the Tevatron should
almost always be associated with a jet of light hadrons.
