The phrase was first used as part of an internet hoax perpetrated on gullible infernites on the highly trafficed World/Inferno Friendship Society message board. In the thread, Brooklyn celebrity and ex-infernite Zach Hazard claimed that blogging sensation Bill "Tiny Baby" (ExquisitCorps) had fallen into an open manhole and was close to death. As a result of the prominence of its creators and supporters in blogging and internet communities, FTIC has since developed into an internet meme comparable to FML.
"It was a sewer that was under construction and he was drunk because it is st patrick's day. we went to some bars and got really drunk (we're still really drunk but freaked out) and he fell in the sewer. they won't let me in the hospital because i'm too drunk, but i'm outside on the hospital wifi waiting for bill to get out or for information on his current state. let's all hope that he is okay because i saw his bones. Fuck this, I'm crying."
I just smoked all my weed and spent my last $60 entering a pizza eating contest to win more money, then threw up after the second slice. FTIC!