Pegs cut up (4)
I believe the answer is:
pins
'pegs' is the definition.
('pin' can be a synonym of 'peg')
'cut up' is the wordplay.
'cut' becomes 'snip' (snip is a kind of cut).
'up' says the letters should be written in reverse (in down clue: letters go upwards).
'snip' reversed gives 'PINS'.
(Other definitions for pins that I've seen before include "Wire fasteners" , "With needles, they create a tingling sensation" , "Stocking fillers" , "security codes" .)