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It is wise guy slang for a fake or a knockoff. It does not come from Italian as far as I know, except that it probably comes from an Italian name (see the following) . It just sounds like the word "fake." It's origin probably comes from the Fugazi Limousine Service which was a company that ran ads constantly on the local New York TV stations in the 70's. Everybody in the NY Tri-state area knew those ads. BTW, it has NOTHING to do with "FUBAR" in meaning or origin.
This guy thought he was buyin' a Rolex, but it was totally fugazi!
Fugazi by TVR1977 January 22, 2018
some thing weird or fake crazy
that nigga had a fugazi ass shirt on
fugazi by ShaneyT February 24, 2011
fake or corny. Not the same shit as advertized.
"Them cats trying to represent themselves as gangsters, but don't know how to do a dead drop is fugazi"
fugazi by Sam Miller December 26, 2002
Title of the sophomore effort from Marillion. The band was really starting to gel here.
Fish was really at his best on Fugazi
fugazi by rhinoman August 27, 2006
British military slang for Fouled Up, Got Ambused, Zipped In (FUGAZI).
"I like breasts."
"FUGAZI!"
fugazi by scarlem June 14, 2003
Vietnamese country band that does Minor Threat covers.
Yo, Fugazi rocks!
Fugazi by Waiter room May 7, 2013