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A derisive portmanteau of "frugal" and "stupid" used especially within dysfunctional corporate environments where management espouses "frugality" as a virtue yet fails to distinguish between this and "cheap."
Manager: I changed your server order from the m1.large nodes to VIC-20s. It's too expensive.
Engineer: There's no way we'll be able to keep the site running on VIC-20s!
Manager: Oh, remind me to dock you for not being frugal in your next performance review.
Engineer: I think you mean frupid.