they didnt use it incorrectly, but they were incorrect, the statement "i know that the moon is made of cheese" is an unambiguously incorrect statement
but furthermore, there is no correct statement of knowledge
Well it is unambiguously incorrect according to the JTB definition. But I think it is a situation where its truth is arbitrary. K(p) could be true or it could be false depending on your taste. Its like asking what the weather is on the moon, is it raining for example? We don't have a rule to decide what this is asking, but we could extend the rule we have in various ways.
If I were taught that the moon is made of cheese and said that I knew it, I could on reflection consider that on that day it was the first of April and I did miss the rest of that week when we were studying the solar system. Perhaps on this sort of reflection I would say that I was wrong to say that I knew the moon was made of cheese.
But if there was no way for me to know better would I say that I was right or wrong to say that I knew it after being persuaded that moon isn't made out cheese? What would it say if I were right, what would it say if I were wrong? Nothing. The only thing to be said is that I was wrong about the moon being made of cheese. What does saying I was wrong to know it say? It could only mean something like the scenario described in the paragraph above, and this would be wrong.