I remember those stupid things from when I was a kid. Totally useless, over-large multi-tool ones were real popular.
Because it makes total sense for you to use a poorly-constructed knife as both a cutting implement but also the thing that holds your matches, tiny first aid kit, flashlight, poncho, and other emergency supplies.
Either way, it was a local urban legend that some idiot had put black powder in his knife handle and screwed the handle cap back on, setting it off and making the stupid thing explode in his hands.