I remember learning this about 20ish years ago and telling my then-sister in law about it when I explained why I wasn’t going to use it anymore. I got told I had a stick up my ass, and this was by a marginalized (gay, immigrant) woman. (Somewhat unrelated note - very grateful she’s a former relation.)
So glad people have been learning and I’ve been hearing “gypped” less and less in recent years.
Some words have simply entered common use and become decoupled from their former meaning. Maybe your acquaintance was right.