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.
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