A situation or event that is screwed up on many levels. Could be external or something that happens to you. Term is derived from the military "Cluster Bomb", which helps explain the impact of a Cluster Fuck. For example, As it relates to America's global image,loss of life and treasure, just to name a few things, the Iraq War is a Cluster Fuck.
The U.S. conduct of the Iraq War is a Cluster Fuck.