Transfer case shifter question

Ok, possibly a dumb question...today I was changing the auto shifter and reoriented the transfer case knob to straighten it out. Every time I attempted to twist the TC shift knob I could feel the whole shifter twist and make a popping sound where it attaches to the TC. I've heard another Trail make the same noise. I removed the knob and then put it back on...it tightened about 180* to far. Basically upside down. I couldn't really get it to really go any further so rather than just force it I backed it off half a turn to be straight. It made the popping sound quite a few times. I'm guessing it's the shifter moving slightly on the locating pins and return spring.

Which brings me to my question...is it possible to damage the shifter where it goes into the TC from twisting/tightening the shift knob? I wouldn't think so unless you really forced (which I tried to avoid), but I thought I'd ask.