Looks fine to me. You have a little less than 1/2 engagement.

If it's really bothering you there is always the possibility of measureing the axle and buying a new one that is slightly longer. You should be able to order one through most good shops. You could also send a message to Hed and ask for their take and if they have solutions.

In general though, if it were me, I would most likely just ride it, but hard to say for sure without holding it in my hand and feeling how the wheel engages the dropouts.