Short for “Gypsy”. Many consider it to be a racial slur. Just as some people use “Jew” as a verb in a similar way (more obviously a slur).

Have you ever heard someone say something like "I got gypped out of X" or "what a gyp!". It's slang for something like a scam or getting ripped off. It originally comes from the word "gypsy", which is an actual ethnicity of people in Europe, who have a negative stereotype of theft/dishonesty.