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/Sounds like "FAH" (as in "far") + "toh" (as in "toll")/

Meaning

A shady deal, murky situation, or unclear mess, sometimes with connotations of deception. In Argentina, having un fato or saying "qué fato" points to something suspicious or tangled going on.

Examples

There's something fishy going on with the missing money from the register.

What's the deal with that guy, tell me everything.

Regional synonyms

In Mexico, someone sharp and quick-witted who reads situations fast and acts before anyone else does. You can also use it as a verb: "avionearse" means to wake up, get smart, and move before it is too late. Being called "avion" is a compliment.