As the joint surfaces suddenly separate, there is no lubricating fluid to fill the joint. So a cavity is created and that's associated with the sound.

Fingers of Nanaimo chiropractor Jerome Fryer, who had approached Kawchuk about the new knuckle-cracking theory and could continuously crack his knuckles, were inserted one at a time into a tube connected to a cable that was slowly pulled until the knuckle joint cracked. MRI video captured each crack in real time, occurring in less than 310 milliseconds.
In every instance, the cracking and joint separation was associated with the rapid creation of a gas-filled cavity, like forming a vacuum, within the synovial fluid, a super-slippery substance that lubricates the joints.
Kawchuk said "as the joint surfaces suddenly separate, there is no more fluid available to fill the increasing joint volume, so a cavity is created and that event is what’s associated with the sound."
The findings pave the way for new research into the therapeutic benefit or harm of joint cracking.
Scientists have calculated that the amount of force at work when you crack your knuckles has enough energy to cause damage to hard surfaces, yet research also shows that habitual knuckle cracking does not appear to cause long-term harm.
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Source-ANI