When two or more people go up to catch a frisbee, and one comes down with the disc after a beautiful grab. Basically, aerial "destruction" of one's ego and/or self-esteem.
Did you see that? He just got skyyed by someone half his height!
To be skyped means to ruin something by improving it. 'Skyped' is used because Skype has slowly become worse with more and more updates. I felt there needed to be a word for this since the German's have the word 'Verschlimmbesserung' (a supposed improvement that makes things worse)
'Oh you've really skyped up that model, its way too over the topnow'