gyp v.

also gipsy, c. 1600, alteration of gypcian, a worn-down Middle English dialectal form of egypcien "Egyptian," from the supposed origin of the people. As an adjective, from 1620s. Compare British gippy (1889) a modern shortened colloquial form of Egyptian.

Cognate with Spanish Gitano and close in sense to Turkish and Arabic Kipti "gypsy," literally "Coptic;" but in Middle French they were Bohémien (see bohemian), and in Spanish also Flamenco "from Flanders." "The gipsies seem doomed to be associated with countries with which they have nothing to do" [Weekley]. Zingari, the Italian and German name, is of unknown origin. Romany is from the people's own language, a plural adjective form of rom "man." Gipsy was the preferred spelling in England. The name is also in extended use applied to "a person exhibiting any of the qualities attributed to Gipsies, as darkness of complexion, trickery in trade, arts of cajolery, and, especially as applied to a young woman, playful freedom or innocent roguishness of action or manner" [Century Dictionary]. As an adjective from 1620s with a sense "unconventional; outdoor."

attested from 1840 as an abbreviation of gipsy (also see gypsy). Also see gyp. Related: Gipped; gipping.

"to cheat, to drive a hard bargain," 1824, from Jew (n.) (compare gyp, welsh, etc.). "Though now commonly employed without direct reference to the Jews as a race, it is regarded by them as offensive and opprobrious" [Century Dictionary, 1902]. The campaign to eliminate it in early 20c. was so successful that people also began to avoid the noun and adjective, using Hebrew instead.

Now I'll say 'a Jew' and just the word Jew sounds like a dirty word and people don't know whether to laugh or not. [Lenny Bruce, "How to Talk Dirty and Influence People," 1965]