More than likely you are seeing the saw blade move inside the handle and liners, but you can only move it if you force it to move. It does not move at all while it is being used for cutting because pressure being applied won't allow any slack or movement.
Also, in order for this hybrid design to work properly, it has to have a "floating" lock pin. This means the lock pin must have a slight degree of movement for it to be able to enter the locking hole in the blade at an angle.
If you notice, when you depress the lock pin, it pulls up and out at an angle, it cannot do this whithout a little movement in the pin.
This design has a slight bit of movement in the lock pin (may be some of your up and down or vertical movement), it absolutly does not affect the performance of this knife at all. Over three years of use by people all over the world has proven that the knife will perform.
This is the thing that is hardest for me to explain to folks........when you have a thick blade as in the main blade, and then rotate to a thinner saw blade within the same handles, you will have a certain degree of room for the saw to move within the handle if "pushed" from side to side because the blade is thicker and won't move within the same area.
If you have a 5/64th allen wrench, try a slight turn to the right, on right side of pivot pin, if it won't move, it's not loose (they use loctite on screws).
Don't hesitate to contact SOG warranty if you are not satisfied, they will correct any problems or send you a new one.
warranty@sogknives.com
Please email me if you did not get the answer you need, thanks.
Robbie Roberson
RobbieRob600@chartertn.net