Tool textures resizing incorrectly

I’ve been trying to make a texture for my tool icon, and while I have done it, Roblox seems to resize the image forcefully into 512x512 size. Here’s my decal:
coil

And this is what Roblox does:
misery

I’d really like to fix this issue since it might give my game a much better look on its tools.

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To avoid this just make the original image 512x512. I copy and pasted it into photoshop on a 512x512 transparent background and slightly modified the size:

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Thanks for the response, I realized the issue a bit before the reply was made that it had to be 512x512 by default. Thank you anyways.