To release a product that is flawed having various aspects of said product or service be completely unusable even though it is for sale on the market or considered completed. Additionally, to provide substandard customer service in effect ignoring the issue(s) when a customer reports them.
Man they really Blizzed up that Obama care ... or ... I called my cell phone company because I don't get reception and they totally Blizzed out and hung up on me.
The same as nerf, actually it means nerfing something to utter uselessity. It originated from the general approach of Blizzard Entertainment to nerf powerful things until they become totally useless.
This also applies to times when something is fixed that was never actually a bug, but is passed off as such.