Knock downed (in contrast to knocked out) gene is not mutated but its level of expression is manipulated, typically, by siRNA or morpholinos. Thus the term should be made a child term of MI:0223) under expressed level.
Knocked out gene is a mutation and thus could be a child of MI:0113 (mutation). The problem is mutation terms combine mutation (as gene change) with its effect (increasing/decreasing/etc) on one specific process. In principle, mutation effects should be handled the same way as the effects of PTMs.