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Red oyster is the new term for spy or spying or telling on someone.
Red oyster was Flavor Flav's spy, and some people believed she was also part of the crew as a "plant" or someone who might have been purposely planted in a reality show (producers are sometimes known to employ their own spies to purposely watch the girls).

As what Eye'z did in the second season of "Flavor of Love," (and also reported on "I Love New York" and "Rock of Love") on VH1, busting a "red oyster" in reality tv means a contestant took a page out of the Red Oyster Handbook and followed in red oyster's footsteps by actually snitching on a rival in an attempt to win the competition.
Red Oyster eliminated 3 flavorettes from "Flavor of Love" by being Flav's spy.
Flavor Flav uses the word red oyster to mean aphrodisiac.
Abigail aka red oyster was the first flavorette to be given a nickname in "Flavor of Love"
Abigail aka red oyster was also the first flavorette to voluntarily withdraw from a competition.
"Don't be a red oyster! Don't tell on me!"
"Stop getting me in trouble. You're such a red oyster!"
"If you bust a red oyster and admit what happened, the competitor will be eliminated!"
"Don't be a red oyster and bow-out of the competition!"
by K.I.T.S June 19, 2008