What does it mean to be called Fugazi?

A fugazi is a fake. There are multiple spellings and various origins for the word. The most reliable sources indicate that fugazi is an old military term that comes from the Italian word fougasse (references date back to 1500s) see wikipedia - Fougasse_(weapon). As a military term, the word means an explosive weapon concealed in a rock or in the ground and it eventually developed into the anti-personnel mine. GIs in WWII picked up the term and there are many references to the word having a British origin meaning F'ed Up, Got Ambushed, Zipped In, although considering the many older references to the word this is probably not true and fugazi is much more likely simply a misspelling of the Italian. American Vietnam vets used the term as a substitute for Fubar - F'ed up beyond all recognition. Another reason why I believe the origin to be Italian is that Italian Americans use the term, pronounced foo-gay-zee, and it has been popularized via mobster films such as Donnie Brasco, whereby Al Pacino's character uses the term to say that some jewels are fake.