2)When you are found out/caught by (ex: the cops/school/ parents/ect.)to be known by whatever nickname you go by. When those who aren't supposed to know, know your nickname. Hence, you must lay low from doing crimes or tagging it up or you may get arrested since they know who you are and so on.
A nickname can be "berned out" in many ways for example the following
-caught tagging in any way
-recorded evidence of multiple people refering to you as that name
-a lot of hit ups or just wrighting of the name on any body part or many belongings owned by the person refered to by that name
Origination of the word: unkown\
use: south cali
Clever: Yea, I know that foo.
Logic: Yea, well his name got "berned out" foo. The cops caught'em taggin it up down Main Street and they arrested his ass. So they won't catch him in the future by the same name, he's changing it to Little Loc.