Wondered why that name was chosen too. Etymology meaning failure does show it to come from Italian far fiasco = make a bottle = dud theatrical performance. Reminds you of GM motors wondering why their Chevy Nova wasn't selling well in Latin America. Why? In Spanish Nova = No va = It doesn't go (work).
I believe the name deliberately refers to the licensing fiasco over who owned the original rights to the L4 kernel that the many spinoffs are based on.