Thanks to the power of the internet, we may have just been spoiled to some information that the Knack developers didn't want to reveal. A 3D animator working at Knack recently posted Knack 2 on their CV. In the CV it stated that Knack 2 has been in development since May last year.
The CV, which is available on LinkedIn, was first discovered by a member of the NeoGAF forum. The CV originally stated that the 3D animator, named Mindy Liang, was working on "animated 3D character motions and cutscenes" on Knack 2 for the PlayStation 4 since May 2015.
As you can imagine, the CV has since been edited and any mention of Knack 2 has been removed. Fortunately the internet never forgets.
What's important to note about this information is that whilst Knack 2 could still be in development, it’s possible that Knack 2 is not going to launch at all. With fairly low scores from players and critics alike, it would be understandable if the developers working on Knack 2 started up the project before dropping it completely.
Another possibility is that Knack 2 could actually be in development but it may be a while before we hear anything official from the development team. Either way, we'd be happy to hear more news about a Knack sequel. The concept for the IP is great and if the developers revisited it, they could potentially make things work a lot better this time round.