1.) An attempt to communicate the term "crazy fool" by using a 21st-century tech-slang spelling. The change in spelling also typifies the type of people most likely to use this term -- namely, those who would never seriously say "crazy fool" in the first place.
2.) A parody of the term "crazy fool" used in conjunction with other street-like vocabulary in order to demonstrate its inherent silliness, especially as a result of its modern widespread use in inappropriate situations.
Def. 1: Did you see that guy in the sportscar fly past those cops? He sure is one krazy foo.
Def. 2: That krazy foo be straight-up trippin' in my hizzouse, G-Dawg!
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