Interesting...Never had this issue. The only way I can see this happening to the old sheaths would be if you took off the scales and let the blank fall through the plastic insert. The BK-7 and 5 both use the same sheath, well at least the old sheaths were the same, no idea about the new ones...I'd still e-mail or call Ka-Bar, even if you dont get it replaced it's still better to report the problem anyway.