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"ruin, smash," 1915, U.S. slang, probably imitative.
(Variations: flooey or kablooey or kerflooey or kerflooie or kerfooey may replace blooey) To end abruptly in failure or disaster; break down; collapse; Go Down the Tube: Will I make it without the air conditioner in the car going kablooey/ Then, of course, the whole thing all goes flooey
[1920+; echoic imitation of an explosion]