Similar to being Friend zoned, but to make it worse goes out with someone close to you. I.E. best friend, brother/sister, or cousin
Guy 1: Hey what happened to you and that one chick you were trying to get.
Guy 2: Oh, I was Friend Fucked be her.
Guy 1: Friend Fucked?
Guy 2: She Friend zoned me, and started going out with my best friend.
Guy 1: Man, fuck that bitch, I'll get you a girl that will stay with you.
Guy 2: Thanks, man.