From the dawn of time, there have been winners and losers. And it has been the sole responsibility of those who win, to point out to the loser, just how much they suck.
The essence of fail has been around for Over 9000 years, but was actively harnessed, and brought to the attention of the world by the French. During WW2 all wars, fail was the biggest export of France, and has remained so up to the present day, although in recent times, it is no longer alone.
Hence the creation of the "YOU FAIL IT" meme.
Essentially, the format goes like this: "YOU FAIL IT (it is ____)." A common and easy substitute for the blank is simply life, implying that the target lacks the skills necessary to deserve being spared from shipment to Auschwitz, post-haste. Of course, other failures can be substituted as the poster feels appropriate. A more severe form is known as epic fail.