To make a "Freudian slip" that is especially embarrassing or obnoxious. Typically followed by the offender or a bystander saying: "Oh crap I/you just freuded", and holding nose or waving hand in front of face as if trying to divert the smell away.
Person A: Why were you late?
Person B: I got stuck on Sex Avenue.
(Person B meant to say 6th Avenue, and has therefore just "freuded")