I love my MUT [I got the BO EOD model] and it's currently my EDC. I dig the hell out of the hammer feature as well; it is awesome. Eh...this particular model is my second iteration. That is, I sent my first model back in to LM on what-I-suppose is a technicality: the 'needle nose' pliers did NOT meet well for what I'd call 'finer' work. It seemed to me that they should - they are, after all, needle nose pliers. That feature was definitely rectified with the new replacement.
However, I've had some problem with the wire cutters jamming the thing shut. Also, the pliers stick on the knife/saw side when opening. I've toyed with the torx screws, but I'm still having a problem - albeit one that is pretty livable. I don't really want to send this one back in, etc., etc.
At any rate, it sounds like something you should send back in to LM. It was their QC fail; personally, I wouldn't f**k with it - let them fix it. It is a pain to send things back in, but if there was ever a warranty to take advantage of, LM's is it. Absolutely. It's still a great tool, though; I really love it.

Welcome to the forum.