OK:
Now...The "reason" you pulled the hell out of this cord was to secure your knife! Mission accomplished! The reason you pulled the tag end "north", up & through your loop, was to "un-secure" your knife. This is done by tugging on the tag end, pulling downward at the same time. Once you have worked a small area loose, you can pull directly on the loop to open it far enough to remove the loop, back over the top of the handle, and un-sheath your knife!
See? Easy-peasy! I hope this helps you folks and answered all of your questions, concerning this subject.
Capt. Chris
PS: One more thing: You notice that there are more holes in the #C sheaths than the paracord takes up. This allows you to:
* Move the cords, higher or lower
* Attch you sheath to a web belt, using a "G I Wire"!...
CCS