I don't have a pocket knife story, but I do have some stories about loaning things. When I was a kid, I loaned my BB gun to an older kid who I trusted. It came back busted.
When I was an adult, I loaned my surfboard to an older adult who I trusted. It came back busted.
Recently, I loaned my favorite book of all time, an out of print book about backpacking through the Golden Trout Wilderness fishing for trout, to a younger lady I trusted. It never came back at all.
Finally, after all these years I have learned, I hope, never to lend anything to anybody.