It is a common saying used. It means, no way, no crap, bet, real deal.
Daniel was trying to let his friend know something serious, his friend did not understand Daniel then said, “dye up” meaning I’m not joking it’s the real deal.
When you break up with a girl and she dyes her hair a different color afterwards.
Tiff: Brad broke up with me the other day..
Britt: Wtf Chad just broke up with me too I was really hurt so I shaved my head, it was a Bald break up.
Tiff: Wow mine was only a Dye break up. I dyed my hair pink.
Britt: Damn pink is about as bad as it gets i’m sorry he hurt you.
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