Hamass IS holding hostages. The Hamass military currently hiding behind civilian centres in Rafah consists of 4 battalions - 1000 men per battalion is a lot more than a "handful"
IDF are fighting a semiregular army in the Gaza strip, the same semiregular army, representative of Gazans, who attacked Israeli civilians on 7 October 23 by 3000 Gazans.
Has Hamass surrendered yet and returned the hostages? No, because they are brutal cowards. So I suggest you contact your local Hamass member to complain about their terrorist actions and Islamist ideals that are failing their Balestinian citizens.