A protective textile sleeve and method of construction thereof is provided. The sleeve has a knit, tubular wall extending lengthwise along a central longitudinal axis between opposite ends. The knit wall has a first state with a decreased length, increased cross-sectional area, as viewed in cross-section taken generally transversely to the central longitudinal axis, and a second state with an increased length, decreased cross-sectional area, as viewed in cross-section taken generally transversely to the central longitudinal axis. The wall includes knit, heat-set yarns imparting a bias on the wall, wherein the bias causes the wall to remain substantially in the first and second states absent an externally applied force.