Matt, I had the exact same problem, and I have talked to others that did also. It's definitely a defect. George (Shelter) replaced mine and sent the barely-used-but-falling-apart one back. Since I added the Tachyon, the new one is not falling apart like the old one, I think because of the reduced stress on the parts. Ultimately, I'd like to have one like Blinky's. That's pretty sweet.
-Tom