I've had mine apart but have not had the PFP knob out. I'm going to give you my best guess. I suspect there is an internal snap ring missing or broken, that would limit the upward travel of the PFP adjuster. I can feel this "hard top out" when I turn mine CCW. With no stop, it would just unscrew like your pic. To get back to functionality, try threading it back in to the same dimension as the other leg. This will take some pressure to engage the threads as your working against the PFP springs 7mm minimum preload. It would be easier if you loosened the compression assy a couple turns to reduce preload, but this requires a special tool. Considering there could possibly be loose snap ring parts on top of the PFP piston, I'd have this serviced ASAP.
What really sucks, at least here, is parts/documentation/support for this fork is nonexistent.
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