In virtual/augmented/mixed reality (VR/AR/MR) applications, rendering soft virtual objects using a hand-held haptic device is challenging due to the anatomical restrictions of the hand and the ungrounded nature of the design, which affect the selection of actuators and sensors and hence limit the resolution and range of forces displayed by the device. We developed a cable-driven haptic device for rendering the net forces involved in grasping and squeezing 3D virtual compliant (soft) objects being held between the index finger and thumb only. Using the proposed device, we investigate the perception of soft objects in virtual environments. We show that the range of object stiffness that can be effectively conveyed to a user in virtual environments (VEs) can be significantly expanded by controlling the relationship between the visual and haptic cues. We propose that a single variable, named Apparent Stiffness Difference, can predict the pattern of human stiffness perception under manipulated conflict, which can be used for rendering a range of soft objects in VEs larger than what is achievable by a haptic device alone due to its physical limits.