In basic terminology, Smeared is a word that is used to represent an event of social disorder where one is to be dissed, slapped or abused as a result of other's enjoyment. Therefore, Smeared is most commonly used as an insult or retort to the abused individual not being able to form a comeback.
Aamir: You're an epic fail.
Sam: The only fail was your dad's condom...
Everyone surrounding the individuals: Smeared.