2. Used to celebrate a massive fuck up
3. In gaming speak, it is served to a loser after they've been pwnd
Congratulations on totaling your new car while driving drunk. Have a nice slice of failcake!
I assassinated your player and served him a failcake. You have been PWND!
It's like when a cake tastes like a dry piece of cornbread with super sugary icing on top: basically unpalatable.
Person 2: Yeah, that was a total fail cake. Sucks to be him.