Yep, the stoppers are missing, there should be some small rings glued to the spars right below those fittings. That's a common problem with many kites, the glue doesn't hold. If you feel around you may find them down inside the leading edge, if not the easiest fix without taking anything apart are the C-Clips
and some Super Glue, they snap over the spar, just put some glue in them and snap them on. Make sure you keep the fabric well away during the drying process so you don't glue it to the spar.
Steve sells them right here - http://www.chicokites.com/store/index.php?act=viewCat&catId=24
Alternatives are to cut small rings off an end cap or some vinyl tubing from your hardware store or rubber vacuum hose from the auto parts store. Steve also has the heat shrink tubing with glue in them that Prism uses on many of their kites, but you must take the spars out to use it. You can split the rings cut from vinyl or rubber tubing and glue them in place like a C-Clip in a pinch, it's not as secure as a full ring but functional just keep an eye on them.
Those cut outs are a bit short but you'll have to take the spars out to make them larger. They need to be hot cut or they will fray easily again. That's more a cosmetic repair then a required repair right now, once you cure the sliding fittings problem you shouldn't experience much if any continued ripping or fraying, a bit of Super Glue on the frays will halt that until you want to make it pretty again. When you're ready to tackle the cosmetic repair take the spars out and make an inside template that will remove the frayed and ripped areas, then a small soldering iron or wood burning iron will hot cut a new larger cut out. That will melt the layers together so you'll probably have to carefully cut between them with an Exacto Knife. Better then new once done.