The orange insert in the handle is a separate piece that has a little bit of movement as a design feature by John Economaki and is not a defect. 

All of the try squares by John Economaki have this type of movement in the handle's orange triangular piece. The slight bit of movement promotes a more comfortable grip than a more rigid insert, although this is subjective to the user.

The main advantage to having the insert be a separate piece is that it is removable/swappable and in the event that the orange triangle were to ever get damaged or develop a burr, this part is able to be swapped out with a new triangle for a more comfortable grip.