To fail badly at something, while suggesting there was an element of unluckiness or inevitability working against you or the subject of said failure.
A slightly slicker way of saying 'epic fail' or 'botched' and a quicker way of saying 'crashed and burned' while lacking the culpability of 'screwed up'.
a: How'd it go with what's-her-name last night?
b: Ah, I bombed out, but no worries, I hooked up with your sister.
a: Oh... Wait, what?
X: How's the derivatives business going? Still trading CDS and sub-prime mortgages?
Y: Nah, market bombed out, wasn't my fault.
X: Yes it was you sack of shit!
Another expression I made up from listening to too much hip-hop and use a lot. It means pretty much the same as "amazing", "cool", or "bomb-ass", but I mostly use it for describing sexual matters.
In paragliding and hang gliding, to bomb out is to fail to find a thermal or lift, resulting in a short flight and an unintended landing.
"I caught a massive sink hole right after launch and totally bombed out. I was on the ground before I even zipped my harness."
"The sky looked epic, but I misread the cycle and bombed out. Now I’m stuck waiting for the retrieve vehicle while the rest of the crew is at cloud base."