For example, say if THE_KING_EDO who's new to DOA5U somehow beats one of the top players like UprisingJC and continuously brags about his victory. Normally, the masses who hear about this, would expect EDO to have skills that exceed the average beginner.
However, if EDO loses to someone beneath ~his~ skill level, he will be christened a Fraud for boasting skills he never had to begin with
I got a better question, how does one become a fraud in fighting games? As much as I hear/read it from random people I play or meet in a lobby, it's thrown around so damn casually.