Please extend a new method to achieve this functionality.
$.extend($.fn.tree.methods,{
	move: function(jq, param){
		return jq.each(function(){
			var t = $(this);
			var li = $(param.target).parent();
			li = param.dir=='up' ? li.prev() : li.next();
			var pnode = li.children('div.tree-node');
			if (pnode.length){
				var data = t.tree('pop', param.target);
				var options = {data:data};
				if (param.dir == 'up'){
					options['before'] = pnode[0];
				} else {
					options['after'] = pnode[0];
				}
				t.tree('insert',options);
			}
		})
	}
})
Find a node and call 'move' method to move a node up or down.
var node = $('#tt').tree('find','123');
$('#tt').tree('move',{
  target: node.target,
  dir: 'up'  // move up
});