When one has been resoundingly defeated in a physical confrontation that one initiated, typically a confrontation that they thoroughly expected to win; when one has suffered physically in such a way that both their bodies and their pride were severely injured.
Did you hear about the fight that broke out in the lunchroom yesterday? A football player threw a punch at a wimp who was hitting on his sister, but it turned out that the little guy could throw one hell of a punch. Long story short, the jock got wrecked!
Nigga 1: Ya know that bitch Monica with that phat ass?
Nigga 2: Hell yeah but her face looking like it came out dat ass
Nigga 1: Absolutely, Shes a WRECKED WAGON.