I don't know what kind of instructor you are, I can only take your word that you are. I can tell you my instructor made it very clear from day one you do NOT tighten your arm and fist, relax and only tighten up at moment of contact when we practice striking. His school is Lawler's TKD in Daly City. School is quite big with like 30 to 40 student classes. He was famous enough before he retired.I will answer it. Again. And I suspect you won't understand the answer. Again.
"Squeeze" is a meaningless word, in this context. If you don't squeeze the grip, you will drop the knife. You will never be able to pick up the knife in the first place.
Grip strength is a continuum. It's not binary. It's not either/or. It's not an On/Off switch. I've said all this multiple times, but you fail to understand it.
If you grip is loose enough that your hand can slide up the blade, then you're not doing it right. I've said this multiple times. Many others, with decades of ACTUAL training and experience in knife arts have said this multiple times. But you don't get it. So this will be the last time I say it. There is no point in discussing it further unless you somehow, after allllllll these repetitions, understand what you're being told.
This is the concept of striking we learn, I translated to stick. I feel quite good using this with knife on bags. Like I said, concept is simple, it's a start. Then practice practice practice day in and day out. BUT still base on the concept.