I think I made a rookie mistake. What to do.

Celluloid is unpredictable, regardless of when it was made.

I have seen modern Winchesters with similar waterfall cell that has degraded. Nickel silver bolster edges next to the cell will start to tarnish first.

Personally, I'd assume the cell will break down, which will kill the knife's collector value. I'd carry it now and enjoy it. If the cell starts to go, have the knife rehandled and continue using it.
 
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