To fail is to be either:
Exceptionally bad at something, or to do/say something stupid to people,
Or for an item/thing to fail, it has to not be what it is, such as a funny comic not being funny, etc.
arpgme's comic FAILS
(Therefore meaning that it could be bad or poor at what it is intended to do)
You sir, FAIL.
(The person has just done/written something stupid or supposedly funny which achieves nothing it's supposed to.)
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