Man, I'm really sorry about your new TiLock, just reading about it makes me fume with angry frustration, and everything else I can imagine if it was my knife; that sucks big time. Like everyone said who said it, CRK will set it up right.
The lock bar is titanium so I don't think that is the problem since titanium is really springy, it is actually extremely hard to bend out of shape, I tried with some thin sheets I was playing with and couldn't do it with my hands; I assume CRK knows that and thus used it for the lock; it sounds to me that the moron who was using, I mean ruining, your knife tried to close it without lifting the dumbbell, he might have bent it out of shape just enough to give the blade the vertical play you mention, and thus the reason for not enough tension.
I hope that is the case, and I suspect it is since the brass is the weakest of all the materials on the lock; that should be an easy fix with the right tools and knowledge, which CRK possesses. I cannot imagine the force he placed on that lock to 'f' it up like that, what an ass.
What a drag indeed; let us know what they say after you call them, they're going to say to send it in so we will have to wait for their diagnosis, probably. I'm looking at mine right now, and I don't see any other way to make it have vertical play. There is no way the titanium bar can bend the S35VN of the blade, and I doubt the bar is bent out of shape; the brass dumbbell can actually turn on its axis inside the hole of the lock bar, try turning it and see if it is out of round.
What a bummer. I agree with everyone else, there are some stupid people out there, what makes it worse is that they are also dishonest and won't admit when they blow it; aaarrgghhhh!