The number one cause of failures in KT handguns is operator error. The folks most likely to have trouble are the under experienced and those who have only ever shot large full size semi-autos like 1911's and revolvers. Just as one shoots a revolver different from semi-auto handguns, one shoots ultralight subcompact semi-autos very differently than full size semi-autos. However, if one learns to shoot these little pocket rockets correctly, his or her shooting improves with full size guns too.
It doesn't matter how much one denies limpwristing, it is easier to limpwrist the little guys that it is to limpwrist a Glock. KelTec handguns are almost too light and operate on the very edge of what physics allows. Larger guns are more forgiving due to the mass of the slides. That mass overcomes almost any grip used by the shooter as well as too little lubrication. A large number of people only use oil on semi-autos. They all run better with a quality grease on the slide and frame rails. IMO, grease is required on all ultralight subcompacts like the P3AT. Even lubed correctly, failures are still to be expected during the first 200 rounds or so as the parts seat themselves. Heck, my wife and I both carry a Walther PPS in 40S&W. Both jammed like crazy during the first 250 rounds just as the guys on PPStalk.com said they would. After that, no more jams. Each Walther cost $625.00. In other words, the amount one pays or the supposed "quality" of a gun mean nothing. In fact, my P3AT has never jammed, not even during break in. My PF-9, however, was a different story.
Any handgun can and will fail. The small 3 inch 1911's are especially prone to malfunctions. I read an article a few months ago where the author actually recommended replacing the recoil springs on these little 1911's EVERY 300 ROUNDS!

His reasoning? He stated that any more rounds than that would throw the gun's timing off so much it could not be trusted in a self-defense situation. I think that's more than a little absurd myself. However, my point is that even $800.00 Para Warthogs and $1200.00 Springfield EMP's are well-known for FTF, FTE, and limpwristing and those are all metal guns in the hands of experienced shooters.
None of the above abrogates the effects of friction or the stress in little guns that shoot full caliber loads. Eventually things will loosen or wear out. This happens with all guns. That's why every gun maker sells replacement parts. It doesn't matter if that gun is a $250.00 P3AT or a $1200.00 EMP.
I'm just saying.