This product, if offered to good friends who help you move, should not be consumed and the purveyors of the Red Cap should be ridiculed for months thereafter. Also, any situation which has a negative outcome or shamelessly cheap origins can be referred to as a "Red Cap" situation.
Red Cap can be used as a verb, interchangable with "Pwned."
Gracious Idiot: Thanks for helping me move guys. We got you some beer, it's in the fridge.
Good Friends: RED CAP? What the fuck?
Gracious Idiot: Yo man, it's good stuff.
Good Friends: Way to break a fin on us.
Stubs: Hey baby, you got some fine curves kickin on that ass. Can I hit that?
Fine Ass Bitch: Go Red Cap yourself, loser.
Ryan: "I can't man, Kara wants me to sit in my bedroom and hibernate all weekend."
Chris: "Damn dude, you gotta get rid of the redcap... so juicy."