Green’s Dictionary of Slang

1. beaten, defeated, killed.

1950		(con. 1936–46) K.S. Prichard Winged Seeds (1984) 217: He was an old man, ‘dusted’, and could scarcely speak for coughing now.
1960		E. De Roo Big Rumble 27: Ya gonna get dusted, Claw.
1968		‘Sl. of Watts’ in Current Sl. III:2 22: Dusted, adj. injured; beaten in a gambling game.
1972		D. Claerbaut Black Jargon in White America 63: dusted v. [...] 2. to be knocked down in a fight.

2. shamed, humiliated.

1989

P. Munro Sl. U. 74: He was dusted when his girlfriend proved him wrong.

3. (US black) emotionally overwhelmed.

2005

B. Coleman Rakim Told Me 128: Kids who are sick of the artifice shown by shallow, copycat rappers [. . .] end up finding [Critical Beatdown] [...] And it still blows their mind. It still gets them dusted.