HELP!! Estapol peeling and milky

I've only ever done a handful of woodwork and it seems I've finally stuffed it up.

I bought a raw pine toybox/shelving unit for my youngest son stained it and then put estapol over the top sanding lightly after 4 hours and re coating....I've gone outside this morning to do final touches and there are places that are peeling and places that are milky idiot me pulled at a peeling piece to try and get rid of it and a great big chunk peeled off :?:(

I think I'm going to have to start again but have no idea how i stuffed up to begin with or if i should use something else to seal it with and then how the heck to I get it all off to start again its a huge toybox with shelving attached to the back/ top of it it's a decent size

I have a feeling I won't be finishing this damn thing any time soon:bigcry::weeping2:

What sort of stain, spirit or water based?

And what type of Estapol oil or water based?