Imagine you give a presentation and you mess it up. You can say kheyli zāye kardam!, I really messed that up./I did awful. There is also an element of embarrassment in this.
In this clip from Shahgoosh, the soldier is bringing a group of lāt men back to the jail. They are all singing in the van, but once they pull up to the police station, the soldier tells them to stop singing, injā dige zāye nakonin!, don't mess things up here!
In another clip, the soldier sings and asks the guy how his voice is (because the guy is also a singer). He responds, kheyli zāye sedāt!, kheyli zāye your voice is awful! Just awful! Offended, the soldier says, zāye? Zāye un ghiāfeye toe, un model muhāye toe!, Your face is zāye, your hairstyle is zāye! In this sense, it's used as an adjective and means ugly/messed up/worthless.