I had to do the same thing last night - what's the "rule" for that - anyone know? I did what you did - gave credit to the person with the most chips at the start of the hand. It was bizarre because we've been playing 4 years and never had it come up, then the FIRST time I use the TD for a tournament, it comes up!!!!
One person can knock out two people, but not vice-versa. I didn't use the combo knock-out, because that doesn't accurately record the rankings.