1530s, "to break wind without noise," probably altered from obsolete fist, from Middle English fisten "break wind" (see feisty) + frequentative suffix -le. Related: Fizzled; fizzling.
Noun sense of "failure, fiasco" is from 1846, originally U.S. college slang for "failure in an exam." Barnhart says it is "not considered as derived from the verb." The verb in this sense is from 1847.