The Knicks are at their best when they're moving the ball and playing a ball-hawking style of defense. The former certainly wasn't in effect in Game 3. New York's offense was dreadful.
Carmelo Anthony and J.R. Smith have struggled to shoot since Game 4 of the Celtics series. They were a combined 10 for 28 in Game 3. That was especially bad because Anthony's 21 points qualified him as the only double digit scorer for New York.
The real story was Roy Hibbert, who dominated the game. His 24 points were crucial. He and David West each had 12 rebounds, helping the Pacers outrebound New York by 13 total and 8 offensive boards. The Pacers defense also prevented the Knicks from relying on the 3-point game, which is their trademark. The team that shot and made the most threes during the regular season shot only 13 in Game 3 and made only 3 of them.
The Knicks also uncharacteristically turned the ball over. They shot about 35% fromt he field. Put it all together and the Knicks were lucky to only lose by 11. The Pacers took the game 82-71 and a 2-1 series lead.