It might refer to the name of a product that just didn't appeal to the market. "Steve Jobs named his new computer the "Apple." His name was a success. You called yours "Rotten Fruit," and nobody wanted to buy it. Your name was a failure.
To me, the sentence isn't a stretch. In my world, what you name something is important.
I think it's meant to derive from some sort of internet slang. I've heard my sister and several of her friends that she speaks to say something along the lines of the English translation. For example, if one of her friends did something that sucked on a game - the others would go to them "that was made of fail" or "you're made of fail." It doesn't make sense to me either and when I hear people say it, it frustrates me but it's just an example I've heard before.
Hopefully it is your suggestion though, I'm hoping it's something that doesn't translate to English properly because I really dislike the "insert thing is made of fail / is a fail etc" :P