It's a troubled word 'gypsy'. It absolutely entered the language as a racial slur - most likely against Roma refugees who ended up in Britain in the 16th century and were supposed by the people of the time to have come from Egypt (Gyptians or something like that). it certainly wasnt something they called themselves or each other - I dont even think they saw themselves as a unified group - there were different clans and tribes as distinct from each other as other nations
But the word has been in the language long enough to have been claimed and rejected by the Roma peoples themselves at various times and in various contexts and has also been used by mainstream communities and nations to other the Roma peoples in devastating ways, and continues to be used in such a way now in some parts of the world.
But it has also been in the language long enough to spawn a host of sayings and prefixes to words that are in and of themselves entirely benign - but rely on a specific conception of a stereotypical Roma experience to have any meaning.
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