Wounded Knee, South Dakota. Signs signifying events that occured there in 1890 and updated by spray paint after the Incident at Wounded Knee in 1973, the year this photo was taken. The Wounded Knee Incident began February 27, 1973. The town of Wounded Knee was seized by followers of the American Indian Movement (AIM). The occupiers controlled the town for 71 days while United States Marshals Service and other law enforcement agencies cordoned off the town.