Read about it here on the web site's blog. We like Knotions a lot, for a variety of reasons: fresh patterns with new-to-the-scene designers, great price (i.e. free), the good sense to publish our own Jordynn's pattern.
We will miss Knotions.
FYI--I would have paid $15 a year without batting an eye for a subscription. Prospective online knit-mag folks, keep that in mind!