I would imagine this is intentional, as fire and other forms of knockback do push you upwards. Though it can be exploited to jump higher, the entire functionality of knockback is to knock you back... I think this is just a side effect of an intended feature.
This could also be marked as working as intended, but if we ever "fix" this because we change damage knockbacks, I don't want the opposite to be reported as a bug.
I would imagine this is intentional, as fire and other forms of knockback do push you upwards. Though it can be exploited to jump higher, the entire functionality of knockback is to knock you back... I think this is just a side effect of an intended feature.