Green’s Dictionary of Slang

bad-eye n.1

[? var. on red-eye n. (1a); + ? it may render the drinker blind/blind adj.1 (1)]

(US) cheap, home-distilled whisky.

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[US]J. Miller First Fam’lies in the Sierras 67: All of the following popular drinks, that is Old Tiger, Bad Eye, Forty Rod, Rat Pizen, Rot Gut, Hell’s Delight, and Howling Modoc, were all made from the same decoction of bad rum, worse tobacco, and first-class cayenne pepper.