All efforts to figure out where this verb came from have been defeated, including attempts to connect it to the noun scupper, a 500-year-old word for a drain opening in the side of a ship. (One conjecture, that the blood of shipboard battle was "scuppered" when it was washed down the scuppers, unfortunately lacks backing in the form of any actual evidence of the verb used this way.) All we know for sure is that scupper meant "to ambush and massacre" in 19th-century military slang. Then, just before the century turned, it found its place in a magazine story in the sense of simply "doing (someone) in." The more common modern application to things rather than people being done in or defeated didn't appear until a couple of decades into the 20th century.