As Steve indicated, region muting is done/undone using the Mute tool. Dragging in the bottom of a clip with the Mute tool will mute a region, and dragging across a muted region in the top of the clip will unmute it.
Also, Ctrl-dragging with the Mute tool will Isolate a region by region-muting clips in other lanes. This was the predecessor to the Comp tool, but still exists.
I don't think there's an accelerator to get muting from the Smart tool, so I think you must have inadvertently select the Mute tool at some point.