I just received this khodmi and I think the seller is referring to examples such as this one. However, this is the first time that I have seen this type of sheath with stitching. The more common type is the dyed red leather over wood sheaths, sometimes with brass fittings. The decorative stitching is very similar in the colorful geometrical shapes and patterns to the baldric on your Berber sword werecow.
-Geoffrey
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