The universe doesn't necessarily have to be expanding into anything. It can simply be expanding on the inside, whereby expanding means that the concept of distance is changing, not that the universe as a whole is actually moving outward.
Consider a road. On day 1, we declare this road to be 1 kilometer long and define a kilometer thusly, and define everything that mentions distance in terms of this notion of a kilometer.
On day 2, we declare the road to be 2 kilometers long, and redefine everything accordingly. The road hasn't actually gotten any bigger, but from the point of view of those having to deal with distances, everything is now farther apart.
This analogy is terribly flawed in that it doesn't extend past the idea of redefining distances, but the important part is there: just because the inside of the universe considers itself to be expanding doesn't mean that the universe as a whole is actually getting bigger.
Nor does the universe have to exist inside anything at all. You're thinking of the universe as a finite object embedded in a larger space, but this might not be the correct way to think of it at all. It is mathematically possible to consider objects without reference to any embedding, so it could be that physically the concept of physical existence is restricted to the universe; the universe is everything that exists.
As for the idea of the fabric of spacetime being "ripped", there is no possible mechanism for that to occur in any physical theory. By rip, I'm taking that to mean that there is a possible path that an object can take that isn't fully contained within spacetime. If there is a "rip" in spacetime that leads somewhere, we can simply incorporate that somewhere into our notion of universe and extend spacetime so that the rip disappears. If the rip doesn't lead anywhere then we get a violation of various conservation laws. So we don't consider rips to exist.
Just to be clear, the notion of a "fabric of spacetime" is a purely Classical Physics/General Relativistic notion. The ideas of time and space in quantum mechanics become very fuzzy, possibly becoming discrete at very small scales. In proposed models for quantum gravity, the situation can become even worse. But in all of these cases we still have no "rips" in that objects in spacetime remain in spacetime (assuming there is a notion of spacetime).