The KoL was associated with successes, but also with failed strikes, and strikes gone violent. Leadership opposed strikes because of this tendency towards violence. Many members joined solely for the purpose of striking and having financial support for their strikes, but since leadership opposed strikes, they rarely got sufficient support, and left. The public frowned upon the violence of some strikes and riots, and when the Knights were involved in any way, the organization lost credibility. The Knights also lost members to other, more promising organizations that supported more radical methods of change.
The main event that sparked the downfall of the Knights was the Haymarket Riot in Chicago in 1886. Several people were killed in the riot, and several members of the Knights were involved. The public was outraged at the involvement of the Knights, and the Knights became less respected as an organization, causing many members to leave.
Terence Powderly, the leader at that time, was also a bad leader. He was indecisive, refused to allow the KoL to take an official political stance, and refused to move to the main Headquarters of the Knights. He also expelled members for disagreeing with him, something that many members disliked.
Citation: Image 5