The act of being completely lost, disoriented or unorganized
Dave: "What the hell are you doing ?"
Chris: "I don't know man, I'm really kauzed right now.
Literally Chaos, a state of total disorientation or the act of being extremely unorganized. People who are suffering from extreme dehydration are often completely lost and are therefore in the state of kauz (Chaos).
Charles: What is that old lady doing ? She seems disorientated.
Gucci: Yeah, she has alzeimer's, she is really Kauzed