The blocks need to go onto the traps so they can be released later. Just a simple matter of going behind each block, pressing "Up" to push the block, pressing "Down" to move Chip back to his original position and then moving onto the next block, right?
Well, that's assuming there's nothing under the blocks. Obviously I should have expected there to be blue walls under them instead, but for some unimaginable reason I didn't, so quickly following the above sequence of moves resulted in this instead.