Yeah the Horizontal sheath is my personal favorite too. Have one on right now. Here ya go Randy on tightening up an old sheath. This is such a cool deal and works so well I wish it was my idea. Its not though I just kind of ran with it and made it more refined and permanent.
Years and years ago a friend had one of my knives. I was just starting to understand how to get a decent fit on a sheath to get this kind of retention (look close above his left front pocket):
Didn't always get it though at that time as I was just starting to experiment with that Loveless welt idea. My friend worked at a place where he wore coveralls while at work that the company provided. So he'd hang his pants in his locker and the way everything was configured, his belt knife would hang upside down. After a few months of use the sheath started loosening up and his knife would fall out while hanging in his locker. He was over one day and was telling me about this and how he fixed it. He took a small piece of Dr Scholls moleskin and stuck it to the inside back of the sheath. This really tightened up the sheath and the knife stopped dropping out. When the sticky on the back of the moleskin kind of wore out he'd just replaced it with a new piece.
Hmm I says, hmm. So what I do is superglue a small piece of soft chap leather, (usually a piece of oiltan) to the inside back. I'll precut the piece and fit it but I want it sticking out of the throat of the sheath all the way and I want it to fit from side to side and maybe an 1.5" approx down into the sheath. After I get it cut to size, I'll dry fit it and the knife inside the sheath to make sure the weight of chap leather chosen is right. Ya can get it too tight by using a piece too thick or not tight enough by using too thin a piece. I use Gorilla brand super glue and I'll put a bead all the way around the chap leather piece and fill in the rest in a zig zag pattern. So I don't completely cover the chap leather piece but pretty close. I'll then give the inside of the sheath where the piece is gonna go a squirt with superglue accelerator and then slide in the chap leather piece. This is the really important part, as I slide it in I want the glue to form a "dam" or bead all the way across the top of the sheath at the junction of the two pieces of leather. If I don't get a complete bead I will add more superglue so that there is a complete bead. I'll also use my finger to make sure the chap leather piece is pressed down flat inside the sheath. I'll then give the complete bead a squirt of accelerator to cure it. I'll use my roundknife to squarely cut off the excess chap leather with the edge of the sheath. I'll use an exacto knife to trim what I can't get with the roundknife and to cut a 45 degree bevel on the chap leather once it is flush. I'll then us a 120 grit flap wheel on a dremel tool to sand these two layers into one and make a nice smooth edge. I'll rub the edge with Wyo Quick Slik (the edge rubbing agent I use in my leather work) and you are done, good to go. This really works crazy good and I've never had one come apart. Will certainly give some new life to an old sheath. Works so good wish it was my idea.