'gyp' (verb/noun) originates from the slang use of 'Gypsy' in English, itself ultimately referring to the Romani people; the slang sense developed in the 19th century to mean 'to swindle,' based on negative stereotypes associating Romani people with trickery.

'Gypsy' came into English via Medieval Latin 'Aegytius'/'Aegyptius' meaning 'Egyptian' (because Romani people were mistakenly thought to come from Egypt). The verb/noun 'gyp' arose later in colloquial English as a clipped form and semantic shift from 'Gypsy' to mean 'cheat' or 'swindle.'

Originally referring (erroneously) to people thought to be from Egypt and then to the Romani, the word's use shifted in slang to describe cheating behavior; today 'gyp' commonly means 'to swindle,' but the term is recognized as derived from and tied to a derogatory stereotype.