A situation in which information, presented as fair and balanced news, has been taken out of context, misrepresented, or simply made up in order to manipulate the public.
When a newscast about peaceful protestors in Madison, WI includes spliced video footage of violent protestors from Sacramento, CA in order to make the Madison protestors look violent, that's Foxed Up news coverage.
A more proper way to say fucked up, often it can be combined with anything that has the word fox in it, Like foxed up at foxwoods. Or in its present tense getting foxed. It has nothing to do with the actual animal though.