When I grew up in North
Toronto, the word "gyp" was used to
mean cheat, and
swindle. I myself used it as children do, without
thought.
That is, until the day I heard the word "jewed" used. And then it came to me--the meaning that people put to the word "gyp", and "gyped" was the same as they put to "jewed".
Then I knew I would never use that word again. I never have, except in this, rather academic context.
A dictionary is rarely the best source for the living language, thought it can help.
Words and sensibilites do change over time. When younger, I was taught that "person of color" was a term of insult. Today it seems to be taken as a description of honor. Nevertheless, I have difficulty in using it.