In its most minor form, it's called a "stinger." Stingers are caused by blows to the side of the head that cause stretching, compression or irritation of nerves. This causes a burning sensation in the neck that runs down the arm into the fingers. Numbness, "funny sensations," and weakness are also common in the involved arm and hand.
In this simple form, conservative rest, ice, anti-inflammatory meds, etc. This can last as short as a few seconds or a couple of weeks. The player should return to action only after ALL symptoms are resolved. If the symptoms become chronic (more than a week or 2) or recurrent, plain films of the neck, as well as an MRI or CT scan must be obtained, because this usually heralds signs of much more serious anatomical damage (eg., ruptured cervical disc, compression fracture, significant brachial nerve plexus injury). This is why it is so important for the player to be immediately perfectly honest about the presence of symptoms, and for the coach to immediately pull the player from game play action, no matter what the situation is. Otherwise, extension of the injury is likely. This is why a coach should never let a player "play through" a stinger.
And yes, such an injury could very well lead to inaccurate "feed back" by the nerves and muscles of the hand and arm to the brain, as to how tight the ball is being held and where the ball is in relation of the hand and arm as well as relation where the ball is "in space" in general. Hope that answers your question.