the use of the phrase is a reference to the taped phone conversation of 50 Cent and Young Buck (When Buck was crying, he stated "I was wrong and confused" about the issue they were having)
Its used in a similar way as saying "cold-blooded" while making fun of your peers...
its used as another way to say
"I fucked up"
Example: Somebody crashes Their car into another driver
Person 1: What the fuck were u thinking - were u paying attention to road?
Person 2: (sniffling) I was wrong..
Person 1: That still doesn't solve the problem dumbass..