He told the club website: "I was hoping it was going to be a cartilage problem and I would return in time to run out on the first day of the season.
"But it was much more serious than that and the doctors recommend that I never play football at any level ever again."
He added: "They said that if I played in the future there would be a chance my knee would crumble and I wouldn't be able to walk again.
"I don't want in a few years time not to be able to kick a ball with my kids in the garden."
Hinshelwood played 13 games after following boss Gary Waddock to Adams Park from Aldershot in January.
Shame because he was a very good player whose career was ruined/blighted by injuries
smithyseagull
He found the net once, in a 2-1 defeat at Walsall in April.
Waddock said: "Everyone at the club is gutted that Hinsh has had to retire.
"You knew what you were getting from him when he stepped across the white line.
"On behalf of the club, I would like to wish him and his family all the best for the future."
The centre-half, who made 99 league appearances for Brighton & Hove Albion, is set to look at coaching options, having achieved his Level One and Two badges.
But for the time being he is concentrating on making a strong recovery.
"I'm going to be on crutches for another six weeks and it's a case of doing exercises to try and improve the movement in my knee," he said.
"I wanted to help Wycombe get back into League One and I'm really disappointed I won't be able to do that."
Waddock is likely to step up his search for a replacement and has previously admitted Brentford defender Alan Bennett is an option.
Source: BBC Sport
Source: BBC Sport