It can also be used as an insult towards individuals who have made some sort of error, effectively calling them a blundering cunt, but is generally used to describe any kind of logistical fuck-up that creates widespread disorder and kerfuffle, similar to a chinese fire-drill, usually made more frustrating by not having any particular individual to blame it on.
"Man-U's defence went to complete cunderblunt in the second half"
"News just in: the cunderblunt in the Middle-East has reached a record high!"
or less frequently:
"You were supposed to remove his LEFT kidney, you cunderblunt!"