The name of the game in Fall Guys: Ultimate Knockout is to make it to the end of the game and survive. It’s you against many other players in a variety of different obstacle courses, competing to finish different goals. One way competitors can take you out is by grabbing you to throw you aside or force you to mess up. It can mean failure for you. You can break out of it, and attempt to make it to the next round.
To break out of the grab, you need to wiggle out of it. There’s no direct button to wiggle. You primarily want to jump, move, and attempt to remove yourself from the opponent’s grip. If a player grabs you mid-jump, you’re in a bit of trouble. It’s a good tactic to prevent you from being able to do anything to react to them, especially if you’re halfway through clearing a gap in the mode.
When a player grabs you while you’re not jumping, it’s a good idea to pull away from them by moving in the opposite direction. You could also try using the dive button to get away, although you want to make sure that there are no edges nearby you that you might tumble off. The goal of why an opponent wants to grab you is to delay you. It might even be mutual destruction where if they can’t win, neither will you, which can’t be the most fun, but it’s a distinct strategy by players. Try to steer clear away from them when you come closer to the goal to make it to the next round.