1. (v.) Drinking/using narcotics to the point where you know longer have control of your body/mind. Usually accompanied by blackouts and in some cases, peeing on your girlfriends Super Nintendo.
2. (adj.) Used to describe something that a close friend or family member did to wrong you.
"Dude I got so federally fucked up last night I peed on my girl's printer. I don't remember SHIT."
"Did you hear that Mike stole Jim's girl then got her pregnant and left hit to raise the kid?"
"Damn, that's federally fucked up."
After the 2008 financial crisis, the world economy needed saving, but the Federal Reserve gave a bunch of newly printed money to the Primary Dealers instead.