1550s, "small piece of cloth cut off or out," probably from Dutch or Low German snippen "to snip, shred," which is of imitative origin. The meaning "a single cut made by shears or scissors" is from 1590s. Figurative of a small amount of anything from 1580s. As a nickname or cant word for a tailor, 1590s.
-y 2
adjective suffix, "full of or characterized by," from Old English -ig, from Proto-Germanic *-iga- (source also of Dutch, Danish, German -ig, Gothic -egs), from PIE -(i)ko-, adjectival suffix, cognate with elements in Greek -ikos, Latin -icus (see -ic). Originally added to nouns in Old English; used from 13c. with verbs, and by 15c. even with other adjectives (for example crispy). Adjectives such as hugy, vasty are artificial words that exist for the sake of poetical metrics.